The Yen is growing a bit. Overview for 03.03.2017

The USD/JPY pair is trading to the downside on Friday afternoon despite several rather mixed statistical reports.

On Friday, the Japanese Yen is growing a little bit against the USD. The current quote for the instrument is 114.13.

Today’s statistics showed that the Core Inflation Rate added 0.1% y/y after losing 0.2% y/y in the previous month, although it was expected to remain the same. The Inflation Rate added 0.4% y/y in January after expanding by 0.3% y/y in December. It’s a good number, however, the main problem of the Japanese inflation lies in the stable growth, which is beyond capability so far. The Tokyo Core CPI in February lost 0.3% y/y against expectations of adding 0.2% y/y.

The Household Spending in Japan in January lost 1.2% y/y, which is much worse than the December reading of -0.3% y/y (expectations were the same).

The labor market reports look quite stable. The Unemployment Rate decreased in January and was 3% after being 3.1% in December.

Overall, those areas, where there was some balance, remain stable. Those with the problems (the stable inflation is the headache No.1 for Japan) – the same. The Yen is responding mostly to the CPI improvement, although the significant decline in the Household Spending implies nothing good.

RoboForex Analytical Department