The Yen recovered. Overview for 22.05.2020
On Friday morning, USDJPY recovered; it is back to moving sideways.
The Japanese Yen is rising against the USD on Friday morning. The current quote for the instrument is 107,42.
The statistics published in the morning showed that the Japanese CPI was only 0.1% y/y in April after being 0.4% y/y in the previous month. On MoM, the indicator was -0.2%.
At the same time, the Core CPI showed -0.2% y/y against the expected reading of -0.1% y/y. On MoM, the indicator was -0.5%.
Deflation is a nightmare for Japan. The Japanese Central Bank undertook atomical efforts to solve the issue of low inflation, which may hurt the country’s economy as much as explosive price surge. And now, under the influence of the Covid-19 pandemic, all these efforts were destroyed.
The BoJ’s emergency meeting that took place earlier this morning kept all parameters of the regulator’s monetary policy intact. Policymakers also launched a new lending program to support small businesses struggling with the coronavirus outbreak.
The Bank of Japan hardly ever has emergency meetings – today’s one was the first over the last 8 years.