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Forex Flash: Japan's industrial production to advance for third month - RBS

FXstreet.com (San Francisco) - The Japanese Ministry of Economy, Trade and Industry is scheduled to publish the March's Industrial Production report on Monday 23:50 GMT (Tuesday 8:50 Tokyo time). Market consensus is to watch a 0.4% increase between February and March, but the RBS' analyst team is more optimistic as they see a 0.5% rise in the monthly figure.

The RBS team estimates “industrial production rose 0.5% mom in March, making it the third consecutive month of increase." The bank points that "in addition to the steady domestic demand, March real exports increased 2.8% mom after falling 2.4% mom in February, supporting the pickup in industrial production.

"However," the bank adds, "while there is still uncertainty in external demand and the competitiveness of Japanese companies in the global market is lower than before, it is unlikely that exports will be pushed up by a depreciation in the JPY."

Therefore, RBS believes "the pick-up in production will remain slow for the time being."

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