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Japan slashs view on economy for first time in 10 months

The Japanese government slashed its view on the economy for the first time in ten months on Wednesday, citing weak demand weighed on capital capital spending and consumer expenditure, per Reuters

Key quotes

"The economy is recovering moderately, although some areas showed stalemate recently,"

"While business conditions and firms' earnings continue to improve, the strength of the corporate sector is not necessarily translating into wages and investment,"

"Domestic demand such as corporate investment and consumer spending lack strength,”

Market reaction

At the press time, the USD/JPY pair is losing 0.15% on the day to trade at 148.16.

USD/JPY battling it out for the 148.00 handle heading into the Wednesday trading window

The USD/JPY kicked off Tuesday with a quick drop from the 148.40 region into a new ten-week low near 147.15, but the US Dollar (USD) managed to recover its balance and reclaim the 148.00 handle, bolstered against the Japanese Yen (USD) by a softly hawkish Federal Reserve (Fed) Meeting Minutes release.
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