USDJPY intends to continue growing on Friday; investors no longer need “safe haven” assets.
At the end of the first November week, the Japanese Yen is retreating against the USD. The current quote for the instrument is 109.30.
Market players are currently showing little interest in “safe haven” assets because they are sure that the USA and China will sign their trade agreement in the nearest future. In fact, these expectations are keeping them afloat for already a week, but nothing has changed so far.
The statistics published by Japan in the morning showed that the Household Spending skyrocketed in September by 9.5% y/y, which is much better than market expectations (+7.1% y/y) and the August reading (+1.0% y/y). However, it’s not surprising: most likely, consumers decided to spend a lot of money before the government introduced a new sales tax. This, in its turn, means that the October number may be pretty disappointing, at least.
Japanese consumers are very careful in their expenses and this tendency continues for years. The indicator behavior in September can easily be explained by economic uncertainty: the Bank of Japan provides stimulus to the country’s economy, but can’t jump-start economic growth.
The Leading Indicators report showed 92.2% in September, the same as expected. The month before, it was 91.9%.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.