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Japanese Core Machinery Orders for April dropped

-2.9% m/m

first m/m, the first m/m fall in 3 months. However, they didn't fall as much as expected:

• Japan Core Machinery Orders (April) -2.9% m/m (vs. expected -3.1%)

The 'not as bad as we expected' has Japan's Cabinet Office breaking out the high fives, upgrading their assessment: news wires amend this to say that while a pick up is seen, the assessment remains unchanged.

• saying they are seeing pick up moves

OK, I need to put my stick in the mud attitude aside. If the Cabinet Office are encouraged then that must be good news for the Japanese economy. At this stage I doubt there are any significant implications for the Bank of Japan, but perhaps it'll boost market perceptions of a cut back in JGB purchases to come in July:

• will formulate a detailed plan to reduce bond buying in July

USD/JPY is circa 157.30, down from highs above 157.60 earlier in morning trade.