JPY takes pause. Overview for 04.07.2023

4 июля 2023 - Fx4News

The Japanese yen, paired with the US dollar, has paused its devaluation. The current USDJPY quote is 144.59.

For four days in a row, there has been no change for the yen, with the devaluation scenario remaining dominant, while there are no reasons for a correction.

The statistics released yesterday showed that the Tankan non-manufacturing index rose to 23 points in the second quarter from 20 points previously, exceeding the forecasts. The same index for the largest manufacturers expanded from 1 to 5 points. Tankan surveys are interesting in terms of their extensive coverage, as they involve over 8000 companies in the manufacturing sector, making them the most reliable reports among similar releases.

Important data from Japan will not be released until Friday this week. There will be a crucial report on household spending, along with data on average wages and leading economic indicators.

The ultra-loose monetary policy of the Bank of Japan remains a key factor influencing the yen. Once the focus shifts to the interest rate differential, the JPY is expected to decline again.