The Yen is starting this week neutrally. Overview for 13.11.2017

The USD/JPY pair started a new November week neutrally; investors are monitoring the USD behavior.

The Japanese Yen is looking okay against the USD on Monday. There are no particular reactions against the USD so far: in his speech, the FOMC member Harker said that he had doubts about the USA inflation stability, but these words didn’t help the Yen to strengthen. Well, the night is still young. The current quote for the instrument is 113.44.

Today’s statistics showed that the PPI in Japan increased up to 3.4% y/y in October after being 3.1% y/y in the previous month and against the same expected reading.

Yoshinori Nakata, the BoJ representative emphasized today the importance of nuanced analysis of the USA Federal Reserve monetary policy. In his opinion, the Fed’s fiscal moves may influence the global economy, although there is no direct correlation between them and the BoJ’ monetary policy. Nakata said that side effects of what the Federal Reserve was doing wouldn’t be serious.

In general, the way the USA Federal Reserve carries on its monetary policy influences somehow other global economies, as well as currency markets and market trends. It’s not been a long time since the Japanese Yen stopped responding to this factor – earlier, investors’ reactions to it could be easily and perfectly seen in the USD/JPY pair fluctuations. Right now, investors are sure that the global economy is going up and there is no need in the Yen as a “safe haven” asset, this was not always the case.

RoboForex Analytical Department