The Yen plummeted to eight months lows. Overview for 15.01.2020
USDJPY updated its multiweek highs due to investors’ reduced interest in “safe haven” assets.
The Japanese Yen reached stability against the USD on Wednesday after plunging to its eight months lows the day before. The current quote for the instrument is 109.92.
Right now, when market players are eagerly waiting for coveted information relating to the signing of the first phase of the US-China trade agreement, demand for the “safe haven” Yen went down significantly.
This morning, the BoJ Governor Kuroda spoke and said that despite the slowdown in some Exports parameters and drawdown in business sentiment the Japanese economy was expanding slowly but steadily. According to the BoJ expectations, the country’s economy will continue growing gradually, although it should be noted that problems in global economies had a serious impact on it.
Officially, the CPI is anticipated to change by approximately 0.5% but may improve up to 2.0% due to a positive difference between production volume and expansion of inflation expectations. Right now, the indicator is pressured by oil prices decline.
The Bank of Japan emphasized once again that it would expand the money base until the inflation reached 2.0%.