The Yen is rising. Overview for 05.10.2018

On Friday, USDJPY is sliding downwards; investors are monitoring the statistics.

The Japanese Yen is getting stronger against the USD at the end of the first October week. The current quote for the instrument is 113.82.

In the morning, Japan published several macroeconomic reports. The Household Spending skyrocketed in September by 2.8% y/y after +0.1% y/y in the previous month. By the way, it wasn’t expected to change at all. Such significant growth was quite surprising: the reading was the strongest over the last three years. The components of the report showed that the country’s population started spending more actively due to increased bonuses, thus improving the domestic demand, which had always been a problem for Japan.

Now it’s better to wait for the September report: if it confirms the current positive tendency, there will be fewer concerns about slowdown in the Japanese economy growth.

The Average Cash Earnings added 0.9% y/y, which is worse than both the previous and expected readings. However, here one should also wait for the next report, it might be better.

The Leading Economic Index increased up to 104.4 point in August after being 103.9 point in July and against the expected reading of 104.23 points.