The Yen started strengthening. Overview for 30.09.2020

30.09.2020

USDJPY is falling on Wednesday morning; the feverish demand for the USD slowed down.

The Japanese Yen is recovering against the USD on Wednesday. The current quote for the instrument is 105.48.

The feverish demand for the American Dollar slowed down, thus providing other traded currencies with a chance to recover and reach stability. However, the driver that earlier supported the USD didn’t go anywhere: the number of new coronavirus cases is increasing all over the world. 

The statistics published by Japan showed some stability in the Retail Sales sector. In August, the indicator was -1.9% m/m after being -2.9% m/m the month before and against the expected reading of -3.2% m/m. Even with all things considered, consumer activism in Japan is rather limited and will remain this way due to a vague economic outlook in the country and the world. 

A preliminary report on the Industrial Production in Japan showed +1.7% m/m in August, and that’s better than expected, +1.5% m/m. However, in July the indicator added 8.7% m/m, thus helping to improve market conditions and provide some support to the country’s economy. Right now, this impulse is fading away and that’s quite logical.

The Housing Starts in Japan was -9.1% y/y: it is better than both the previous and expected readings (-11.4% y/y and -10.0% y/y respectively) but still rather sad. The country’s construction sector is highly unlikely to revive until the end of the year.

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.