USDJPY is still under pressure, but “bears” calmed down a bit.
The Japanese Yen remains strong against the USD on Wednesday. The current quote for the instrument is 108.78. Yesterday, it reached the highest levels of the last five weeks.
The statistics published by Japan in the morning turned out to be quite good. The Retail Sales added 1.6% y/y in April after expanding 1.0% y/y the month before and against the expected reading of +0.9% y/y. The report is estimated as positive, because this indicator has been a problem for a long time due to rather complicated attitude of the country’s population to big spending.
The Japanese Consumer Confidence increased up to 43.8 points in May after being 43.6 points in the previous month and against the expected reading of 43.9 points. It’s also quite positive for the Japanese economy, because the strong statistics on this indicator means that the population may continue pushing the Retail Sales upwards.
When delivering his speech today, Mr. Kuroda, the Governor of the BoJ, said that the external econo0mic background had changed significantly for the better: the trading activity was once again quite dynamic after some decline in the past and the trade and economic relations between countries were getting stronger. The main problems in the Japanese economy are still the behavior of prices and the dynamics in salaries. After that, Kuroda was speaking about strategies of the global Central Banks, but it was not interesting for investors.
One should note that the global situation on the market hasn’t changed a lot and investors still require “safe haven” assets, including the Yen.
RoboForex Analytical Department