Strengthening of the Yen didn’t last long. Overview for 01.11.2017

After a short pause, the USD/JPY pair is back to growing.

On Wednesday afternoon, the Japanese Yen is retreating against the USD. The current quote for the instrument is 113.88.

The statistics published in the morning showed that the Nikkei Manufacturing PMI in Japan increased up to 52.8 points in October after being 52.5 points in September. The components of the report are pretty curious. On the one hand, new orders, output, and employment increased. On the other hand, there are signs of significant decline of the business activity due to the lack of economic security in the country. Nevertheless, the indicators is rising and providing support to the GDP.

According to the comments made by Shinzō Abe, the current Prime Minister of Japan, the Yen rate looked stable and raised no questions. In response to these words, the Yen fell even more, although right now the USD is trading quietly against other currencies.

According to Takatoshi Itō, one of the candidates for the Head of the BoJ (the current head’s term of office expires in spring 2018), the QE program has to continue as long as the inflation needs to reach 1%. By the way, the BoJ’s target is 2%. Itō thinks that when the value of the CPI reaches 1%, the regulator may become more flexible in making its monetary policy and it will be easier to close the QE.

RoboForex Analytical Department