On Monday, the statistics bureau of Japan released the Machinery orders data. In a monthly basic, it increased from 6.5% to 12.2% in May. These numbers are higher than the forecast. 

Besides that, it also continued the growth for three months in a row. Meanwhile, the Japan’s machinery order in a monthly basis increased by 7.8 percent in May. That is a better one. 

This number is beyond the expectation of 0.6% increase in April and better than the 2.6% increase expectation. The rising orders are mostly supported by the electrical machinery demands. 

That is growing by 2.8%. Meanwhile, the non-manufacture sectors are also rising by 10% and leaded by the telecommunications sectors. That experience the first increase in the latest 6 months. 

A Good Sign for the Japan’s Economy

The positive data release from the machinery industry announced yesterday morning becomes a good sign for Japan. It is known that the country is struggling to handle the virus. 

They try to handle the effect of the COVID-19 pandemic. It is because the machinery orders can be a capital purchase indicator in 6 up to 9 months ahead. That is the possibility. 

The increasing demands mean that the capital purchase will be rising too. It is especially in some quarters ahead and have the positive impacts for the Japan’s economic 

The demands are also expected in a rebound level. It is because the vaccination programs which are wider globally or domestically. That brings the positive effects as well. 

Yen is Still Benefiting As a Safe Haven

The USD / JPY pair is now moving around the 110.08 level. That is weakening by 0.03 percent from the daily open price. As a safe haven, Yen is benefiting by the COVID-19 increase. 

It is especially for the Delta variant which triggers the market concern. The global recovery risk nowadays is threatened because so many countries are forced to apply the social restriction. 

The scale is bigger or wider. The aim is to handle the spread of the coronavirus, especially the delta variant. Elsewhere, the US dollar was also slightly increasing for  about 0.1%.

It reaches the 92.20 level in the early trading this week. The COVID-19 pandemic triggers the concern again for the global recovery prospect and the investors decide to choose the wait and see action. 

The Jerome Powell Testimonial is Awaited

Nowadays, the market participants are waiting for the testimonials from the Fed’s leader, Jerome Powell. They are also waiting for the American data release about the inflation.

Tokyo was officially entering the emergency status for the forth time yesterday. The new south Wales state in Australia reported the hundred new cases every day due to the pandemic. 

It makes the government created the plan to extend the lockdown period again. The COVID-19 data increase in several Asian countries are also still high until now. 

Pound Sterling, the Australian Dollar, together with the other currencies which are sensitive to the risk, are experiencing the light pressure. It is because the risk-off market sentiment.

Some Currencies Are Worse

The currencies of the countries which are based on the tourism such as the Thailand baht is hit significantly. Meanwhile, the safe haven option such as the USD and Yen are stronger. 

The economy experts surveyed by the Reuters predicted that the inflation speed in the America will increase by 0.4% month-over-month in June this 2021. That is a good progress too.

The rising inflation beyond the expectation has a chance to push The Fed to tighten its policy as soon as possible. However, that expectation may be faded if Powel aside the inflation. 

Meanwhile, the People’s bank of China on Friday announced their loosened monetary policy. The aim is to push the economy recovery after the pandemic and that decision is highlighted.