JPY is under pressure. Overview for 28.02.2023

The Japanese yen against the US dollar remains weak. The current quote is 136.35.

Morning statistics from Japan demonstrated growth of retail sales in January by 6.3% y/y while the forecast had been 4.2%. A month before, the growth amounted to 3.8% y/y.

The prelim calculation of industrial production volume in December demonstrated a decline by 4.6% m/m, while the expected decline was 2.9%, and previously there was growth by 0.3% m/m.

The yen remains under pressure because of the difference in the interest rates of the Bank of Japan and the Federal Reserve System. The conservative position of the Japanese regulator is not going to be revised as yet, while the Fed remains aggressive. This has a serious negative effect on the yen.