Given the total and utter lack of response from USDJPY, it should be clear that the exuberance that will be expounded tomorrow regarding Japan’s Machine Orders 19.1% MoM jump (more than tripling expectations) should be taken with the proverbial Keynesian drag-demand-forward pinch of salt. This is the biggest monthly jump in machine orders in 18 years as non-ferrous metals manufacturing jumped an impressive 270%.
Of course, as we have seen throughout Japan’s checkered lost decades, this is entirely unsustainable as, while extrapolators will be quick to point out how this proves Abenomics is working (while bulls will demand moar QQE even though this impressive number should shun the BoJ for one more month at least) – as they say in porn business, what goes up, must come down and we suspect April will be an uncomfortable month for Japanese machine orders.
via Zero Hedge http://ift.tt/1sIUj52 Tyler Durden