The Yen Declines Overview 25.05.2017

25 мая 2017 - Fx4News

The Japanese Yen is declining a little bit against the US Dollar. Currently the pair holds at 111.79. Overall, the Japanese Yen moves right in the middle of the channel 110.21 - 114.50.

According to Mr. Sarukai, a member of the board of BoJ, the central bank's basic strategy is sill a soft monetary policy because moderate iflation and high degree of uncertainty in the outer world still play role as the key factors for monetary easing.

Stimulating demand doesn't have a sense on a short-time period: the target value on consumer prices will be achieved when demand has been raised. To kick-start the economy, the Japanese should embark upon long-term problems - stimulating companies and improvement of labor efficiency.

One can't say Mr. Sarukai is wrong: any improvement should be based on domestic demand for a real recovery, not a virtual one. All the factors will be involved then, and growth will be of a long-term nature.

The US Dollar is still getting weaker against major currencies. Degree of risk has been lowered, but the investors don't show much interest for the greenback. Apparently, such a situation seems to last until the middle of June: in June the Fed will start raising the basic rate. This means the Yen will keep its gains for the next two weeks, provided there is no external stress.