JPY learnt balance. Overview for 08.12.2022

The Japanese yen against the US dollar remains neutral. The quote is 137.05.

Curiously enough, the market somehow manages to keep the yen balanced. With the huge difference between monetary policies of the Bank of Japan and the US Federal Reserve System, the JPY continues devaluation. However, due to excessive market expectations concerning the pause in the dynamics of the Fed’s policy and a milder than usual increase in the US interest rate in December, the dollar turned out in a weak position. And the yen immediately gripped the chance.

The final Japanese GDP report published today demonstrated that the Japanese economy in Q3 dropped by 0.2% q/q instead of the expected 0.3% q/q.

It turns out that the economy still has strength to withstand background problems and the conservative policy of the BoJ. Inflation is growing in places; the country keeps stimulating the economic system, but the public debt is growing accordingly.

Bank crediting volumes in the country in November grew by 2.7% y/y against 2.6% previously and the forecast decline by 2.2%. This is a good sign.