The Japanese yen against the US dollar looks quite confident. The current quote is 146.76.
The morning statistics from Japan came out non-homogenous. First thing, we are interested in household spending. The indicator has grown by 2.3% y/y, while a month before it grew by 5.1%. The forecast was conservative, suggesting a decline to 2.6% y/y.
This indicator can be interpreted as a leading one for inflation. At a certain point it seemed that people started spending more. This could stimulate the economy but apparently, it was just a glimpse of optimism. Households are spending less again because they do not believe in the future of the economy and prefer to save money.
In the report on the monetary policy, presented today by the Bank of Japan, it is said that inflation remains high in the country because the regulator sees evidence of growth of prices for services. In the next financial year, consumer inflation will slow down to less than 2% due to the slow-down of the global economy.
In the document, by the way, it is highlighted once again that currency rates are defined by fundamental reasons.
Source: Roboforex
