The Yen is looking stable. Overview for 20.11.2018

On Tuesday morning, USDJPY is sliding downwards; the weak American currency gives the Yen a shot to reach stability.

The Japanese Yen continues rising against the USD on Tuesday. The current quote for the instrument is 112.51.

In the morning, Haruhiko Kuroda, the Governor of the Bank of Japan delivered a speech, but market players didn’t consider it as a catalyst or a reason for any movements. At the same time, the Yen has good chances to rise thanks to the weak American currency: as long as the US bond prices continue fluctuating and the published statistics aren’t very positive, the USD remains under pressure and other traded currencies have an opportunity to recover. 

This Thursday, Japan is going to report on the inflation. The National Core CPI has been 1.0% y/y for a long time and keeping the indicator at this low level is really a problem for the Japanese regulator. 

Another problem the BoJ is facing is directly connected to the weak inflation in the country. This is about the GDP. The Japanese economy is not looking too strong: in the third quarter 2019, the indicator lost 1.2% y/y. The slower the economic growth, the less active the inflation trend. So, in order to stimulate the economy, the Bank of Japan has to keep “ultrasoft” approach to its monetary policy.