The Yen stopped rising. Overview for 07.08.2020

07.08.2020

At the end of the first August week, USDJPY slowed down its growth; at the moment, it is consolidating.

The Japanese Yen reached stability against the USD on Friday afternoon. The current quote for the instrument is 105.62.

Market players are still very careful when it comes to risks and continue buying “safe haven” assets. Stock markets are currently moving quite high and require correction but lack reasons for that. The coronavirus pandemic remains very alarming, although people got used to it. 

In the morning, Japan published several interesting reports. For example, Household Spending showed -1.2% y/y in June after being -16.2% y/y in the previous month. The indicator was expected to improve and show -7.8% y/y but the reality turned out to be much better. Of course, Japanese consumers “recovered from coma” after the pandemic but they are still very cautious in their spending because no one knows what may happen to the country’s economy in the future. 

The Average Cash Earnings showed -1.7% y/y in June after being -2.3% y/y in May and against the expected reading of -3.0% y/y. 

The Leading Indicators improved from 78.4% in May to 85.0% in June. It’s another good signal. 

In general, the economic environment in Japan is slowly getting better but it’s too early to talk about proper recovery. 

Attention!

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.