The Yen stopped plunging. Overview for 06.09.2019

On Friday, USDJPY stopped its active growth; right now, it is starting to consolidate. 

The Japanese Yen is no longer weakening against the USD. As soon as global financial tensions reduced, demand for “safe haven” assets also went down and the yen got under pressure. Right now, market players are starting to adjust their positions and analyze what is happening. The current quote for the instrument is 106.99.

The statistics published in the morning showed that the Average Cash Earnings lost 0.3% y/y in July after adding 0.4% y/y in the previous month and against the expected reading of +0.1% y/y. It’s a bad signal, which means that the state of things in Japanese companies and enterprises are so shaky that they not only stop competing for workers but also reduce expenses on them.

The Household Spending in Japan expanded by 0.8% y/y after adding 2.7% y/y in June and against the expected reading of +0.9% y/y. 

This indicator shows how the country’s population spends their money and can be considered as an objective leading indicator of economic activity. So far, it remains positive, but there are signals that the current situation is rather unstable and mixed. It’s not good news for the Yen.