USDJPY has been falling for the second trading session in a row; investors are increasing their positions in “safe haven” assets.
The Japanese Yen continues strengthening against the USD on Tuesday. The current quote for the instrument is 108.67.
The statistics from Japan published in the morning showed that the Unemployment Rate in April remained unchanged at 2.5%. The reading is considered as neutral, that’s why investors’ attention is focused on the factors, which are external for the Japanese economy and increase their interest in “safe haven” assets.
Mostly, it’s all about Italy, where political turmoil is getting more tensed. The country is highly likely to have new elections and market players don’t like this. Like we said yesterday, this refers to Sergio Mattarella’s, the President of Italy, having refused to approve the assignment of Paolo Savona as the country’s Minister of Economy and Finances. Savona is known as a Eurosceptic, however, this decision was taken by the country’s opposition with displeasure. Right now, the opposition is engaged in forming a coalition against the party of power, but if the current situation continues to unravel, it might cancel its plans. One way or another, this might really mean new elections in the country.
It’s a risky outcome for Italy, which might find itself in the middle of the scandal once again.
The macroeconomic calendar has been almost empty for the last couple of days, thus creating some kind of informational “vacuum”, which is filled by different fears and concerns.
RoboForex Analytical Department