The Yen got stabilized. Overview for 01.09.2017

After moving actively at the end of August, the UDS/JPY pair got stabilized; the market is monitoring the geopolitics.  

The Japanese Yen stopped plummeting against the USD and got stabilized close to the level it reached in the middle of August. The current quote for the instrument is 110.11.

The reports published today showed that the Final Manufacturing PMI in August decreased up to 52.2 points after being 52.8 points in the previous month and against the same expectations. This report should describe the “health” of the sector. Everything that is higher than 50 points, a psychologically-crucial level, indicates that the sector is improving and vice versa.

The August reading of the Consumer Confidence Index decreased up to 43.3 points against expectations of increasing up to 43.5 points.

However, the market has no time to focus on the statistics. In the morning, Tarō Asō, the Minister of Finance, announced that we had cancelled his visit to the USA due to possible complications and growing animosity with North Korea. During the visit, which was planned earlier, American and Japanese politicians were expected to discuss their bilateral trade. But right now, the geopolitical factor took the center stage and the USA kindly agreed to it.

Right now, the conflict with North Korea is not very acute, but the situation can become critical at any moment, especially since North Korean government is doing everything to make it happen.

RoboForex Analytical Department