Yen is balanced. Overview for 31.10.2022

On Monday, the Japanese yen against the US dollar looks neutral. The current quote is 148.25.

The yen is becoming weaker again after large-scale interventions of the Bank of Japan. The process will not be fast, because the market is still full of money. However, the yen has no other option than to fall as long as the difference between monetary approaches and interest rates of the Bank of Japan and the US Federal Reserve System remains so huge.

Morning statistics from Japan turned out to be mixed.

Particularly, retail sales in September grew by 4.5% y/y against 4.1% in August and the forecast decline to 4.0%. This is a good signal even with the growing inflation.

The Japanese CCI dropped to 29.9 points from 30.8 before. It had been expected, however, to grow to 31 points.

The number of new houses starts in September, which is the most important index for the real estate market, grew by just 1% upon growing by 4.6% in August. The decrease in the segment might be due to the speeding-up of growth of the CPI.