The Yen slowed down its decline. Overview for 16.05.2018

16.05.2018

On Wednesday afternoon, USDJPY is trading to the downside, but pretty close to the highs it reached on January 23rd.

The Japanese Yen stopped falling against the USD on Wednesday, but it is sure ton the end of the story. The current quote for the instrument is 110.14.

The strength of the American currency may be explained despite the weak April report on the US Retail Sales published yesterday. The 10-Year Bond continues improving – right now, it’s more than 3%; at the same time, the potential to continue the rally on American stock exchanges is also quite high. In this light, the USD is looking fine despite the fact that the statistics didn’t meet expectations.

The numbers reported by Japan in the morning weren’t too good for investors. The preliminary report on the GDP in the first quarter 2018 showed -0.2% q/q after +0.4% q/q the quarter before and against the expected reading of 0%. On YoY, the indicator also disappointed as it lost 0.6% after adding 0.6% (revised to 1.6%) in the previous quarter.

Judging by the statistics, there might be problems in the Japanese economy, unless these weak numbers are the result of some local and seasonal factors. The country’s economy decreased for the first time over 8 quarters.

The Japanese Industrial Production expanded by 1.4% y/y in March, which is more than the expected reading of +1.2% y/y.

 

RoboMarkets Analytical Department

 

Attention!

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

The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.

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