The Yen continues retreating. Overview for 26.05.2020
On Tuesday morning, USDJPY continues the momentum but the horizon is quite hazy.
The Japanese Yen is falling against the USD amid low demand for “safe haven” assets. The current quote for the instrument is 107.83.
The statistics published in the morning showed that the SPPI added 1.0% y/y in April after being +1.6% y/y in March and against the expected reading of +1.3% y/y. The All Industries Activity lost 3.8% m/m against -0.7% m/m over the same period of time. Market expectations were -3.9% m/m.
Japan is ready to remove the state of emergency, at least in 5 regions, including Tokyo. Once the country is really thinking the quarantine measures aren’t necessary anymore, then the outbreak is retreating indeed.
However, it doesn’t mean that all restrictions that prevent the country’s population from mass contagion will be removed at once. But it’s still a sign of improved epidemiologic situation in Japan.
These days, when financial markets are calm and quiet, the Yen is barely in demand as s “safe haven” asset. However, it may appear temporarily.