USDJPY reached stability after a couple of days of sales.
The Japanese Yen is slowly falling against the USD on Friday – market players are analysing the inflation data. The current quote for the instrument is 113.93.
Today’s statistics from Japan made investors pause to think. The Consumer Price Index in the country showed 0.2% y/y in September against the expected reading of -0.3% y/y. It’s rather unexpected for Japan: instead of deflation, there is inflation. The Core CPI showed 0.1% y/y, the same as expected.
Low inflation, which is quite often negative, is a huge issue for Japan, where the QE programs are much bigger than in other countries. However, the programs haven’t been able to boost consumer spending. The country's population is very careful in spending money after looking at the economic prospects.
In this light, it will be very interesting to track the inflation data in the future. if the next reports show the indicator growth, the national currency may get significant support.
The Flash Manufacturing PMI in Japan was 52.0 points in September after being 51.5 points in the previous month.