USDJPY reached new highs – the “greenback” continues to get stronger.
The Japanese Yen plunged against the USD. The current quote for the instrument is 137.02.
A new high for the pair is at 137.28.
The USD keeps getting stronger, making the Yen retreat. Despite an unstable situation in the market, investors barely have any interest in the Yen as a “safe haven” asset.
As a result, the devaluation issue, which seemed to have been put on the back burner, has been revived.
The statistics published by Japan earlier this morning showed that Core Machinery Orders dropped 5.6% m/m in May after adding 10.8% m/m in April and against the expected decline of 5.3% m/m.
On YoY, the indicator gained 7.4%, above market expectations of 5.8%.
The domestic statistics reflect not the stablest situation in the Japanese economy. For example, the Household Spending report for May released earlier indicates difficulties with prices and spending – the report showed -0/5% y/y, although it was anticipated to gain 2.2% y/y. In April, the indicator lost 1.7% y/y.
One may assume that the country’s population is once again concerned with the inflation boost caused by the energy price surge, making people switch to a “save money” spending pattern.
Source: Roboforex
