The Yen is rising on expectations of economic stimulus package. Overview for 07.04.2020
USDJPY is falling on Tuesday morning. Japan is preparing for a new stimulus package.
The Japanese Yen is strengthening against the USD on Tuesday. The current quote for the instrument is 108.92.
The Japanese Prime Minister Shinzo Abe announced a new economic stimulus package worth ¥108T ($989B). it’s a very positive moment for the country’s economy, which means that the government doesn’t stand aside and is ready to stay in sync with the changing market conditions.
At the same time, there isn’t too much positive for the Yen, because the rumor has it that Japan may declare a state of emergency due to the coronavirus pandemic. First of all, it’s about Tokyo but may cover other regions as well.
In the morning, Japan reported on the Household Spending in February, which lost 0.3% y/y after showing -3.9% m/m in January. The actual reading is much better than expected, -3.3% m/m. The indicator shows that the population is ready to spend money and that’s been a problem for Japan over the last previous months.,
The Average Cash Earnings added 1.0% y/y in February after expanding by 1.2% y/y the month before. It’s not very good but still better than expected.