Growth of JPY did not last. Overview for 15.11.2022

growth-of-jpy-did-not-last-overview-for-1511.2022

The Japanese yen against the US dollar is getting every moment weaker. The current USDJPY quote is 140.54.

The morning Japanese statistics show that in Q3 the GDP of the country dropped by 1.2% y/y, while the forecast was a decline by 1.1% y/y. Quarter-wise, the decline was 0.3% against the expected growth by 0.3%.

Such statistics are no surprise: the Japanese economy is strongly bound to export. If there is no one to sell to, domestic production has to be cut down on because such volumes cannot be covered by domestic demand, neither can they be stored.

Strategically, the weakness of the yen might be good for inner production. However, this gives no foothold for the economic system.

The difference between the monetary approaches of the US Federal Reserve System and the Bank of Japan leaves the yen vulnerable. Previously the BoJ mentioned that its credit and monetary policy were not to be revised. And if the regulator sees no reasons for novelties, the situation around the yen remains unchanged: down and down again.

Source: Roboforex

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