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Forex Trading Reviews & News 
By: Mike Campbell
Figures released by the Japanese Finance Ministry show that factory output has continued to rise for the 11th straight month. Data for January indicates that manufacturing output rose by 2.5% on an annualised basis, pointing at a real, albeit, slow recovery in the world’s second largest economy. The improved output has come in response to higher demand from Japan’s major trading partner, China. Vehicle and construction material exports are particularly buoyant currently.
There has also been a rise in the consumer sales figures for January which rose by 2.6% over the figure for January 2009. However, data also reveals that the consumer price index fell by 1.3% in the year ending in January. This means that the volume of sales has increased, but the unit costs of the items purchased is continuing to fall. The fact that the absolute amount of consumer spending is rising is a good sign that economic recovery is underway. Falling prices act as a break on economic activity because consumers will delay making major purchases for as long as possible in the knowledge that the product may be cheaper when they eventually purchase it. These deflationary pressures have been a feature of Japanese life for two decades now.
Sterling Slips To 10 Month Low Against The Dollar
2010 will be an election year in the UK. Many people believe that the Conservative party will return to power after 13 years in opposition, but the poles have been narrowing and a hung parliament seems increasingly likely. The markets have reacted badly to the prospect and Sterling has fallen to a 10 month trading low against the Dollar because of it. The Pound is currently buying $1.4881 and has shed 7% of its value this year.
