The Yen is waiting for signals from the market. Overview for 15.10.2019

On Tuesday morning, USDJPY is falling a little bit; investors are estimating global interests towards risks. 

The Japanese Yen is not in active demand. The current quote for USDJPY is 108.32.

The statistics published today showed that the Tertiary Industry Activity in Japan added 0.4% m/m in August: it’s more than the July reading (+0.1% m/m), but not as good as expected (+0.6% m/m). This is a leading indicator that shows parameters of retail sales, as well as service and utility sectors, and is published before Tankan report. So far, everything is rather neutral, which is pretty positive given the current state of the Japanese economy. 

The revised report on the Industrial Production showed -1.2% m/m in August, the same as did the preliminary one. The indicator is quite unstable: it lost 3.3% m/m in June while adding 1.3% m/m in the following month. These fluctuations are mostly connected with the external demand and global trade wars: the export-oriented Japanese economy finds it very difficult to adapt to sluggish demand.

As a rule, the Yen barely responds to domestic numbers; market players use the currency as a “safe haven” asset during periods of instability. 

At the moment, investors are waiting for any news relating to US-China trade talks. For instance, they are very interested in whether the parties will sign at least the first part of the trade agreement early in November.