rfxsignals January 31, 2020 No Comments

The Yen is consolidating. Overview for 31.01.2020


On Friday morning, USDJPY continues consolidating inside the range; investors are quite calm about “safe haven” assets.

The Japanese Yen is correcting against the USD on Friday after strengthening the day before. The current quote for the instrument is 109.08.

Demand for the Yen has been more active recently due to an outbreak of the Chinese coronavirus. Market players weren’t sure that the outbreak would have no impact on real economic features. Probably, they were thinking that the Chinese population may reduce their retail sales and focus more on treatment and protecting their health. This, in its turn, might influence the country’s industrial production and, hence, requirements for raw materials and energies. This was the exact reason for panic on the market and investors’ needs for “safe haven” assets were in favor of the Yen.

The statistics published by Japan in the morning showed that the Unemployment Rate in the country remained at 2.2% in December against the expected reading of 2.3%. The Tokyo Core CPI, the leading indicator for inflation in the country showed 0.7% y/y in January against 0.8% y/y the month before. It’s not a good piece of news.

The Retail Sales y/y lost 2.6% y/y in December after adding 2.1% y/y in November and against the expected reading of -1.7% y/y.

The preliminary report of the Industrial Production showed +1.3% m/m in December after being -1.0% m/m in the previous month. The indicator is reaching stability and that’s a good sign.