Yen got a present. Overview for 01.12.2022

yen-got-a-present-overview-for-0112.2022

The Japanese yen got seriously stronger against the US dollar overnight. The current quote is 136.30.

The main reason for the stabilisation of the yen became the crash of the dollar. This happened after the head of the US Federal Reserve System Jerome Powell acknowledged their plan to increase the interest rate in smaller portions from now on. The market cheered up, expecting the rate at 4.50% y/y in December, and played against the USD. Other currencies grew.

The only hope that the yen got is for such divine gifts because the only fundamental signals it has predict devaluation. Morning publications from Japan demonstrated that the final PMI in production in November had dropped to 49.00 from 49.4 points. Businesses are shutting up because they do not trust the future.

The same is going on at the other side: the CCI in Japan has dropped to 28.6 from 29.9 points before. The reason is the same: extremely unclear future and high risks.

Source: Roboforex

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