Japanese Yen (JPY) Exchange Rate Forecast: Friday set to be Influential Day for the Yen
The Japanese Yen (JPY) has a busy week ahead for data publishing; Friday being the most influential day.
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The National Consumer Price Index, Household Spending, Job-To-Applicant Ratio, Jobless Rate, Large Retailers Sales and Retail Trade data will all be released Friday.
Thursday may see the Yen fluctuate when stocks and bonds data are released.
With the current Iraq conflict, investors have been looking to the Yen as a safe-haven asset to secure their finances.
Bank of Japan Governor Haruhiko Kuroda spoke at the weekend regarding the current monetary policy and the effects it’s had on the prolonged period of deflation experienced in Japan.
Although the nation’s economy has expanded, it’s been unable to reach inflation targets even with the unprecedented stimulus measures introduced by the BOJ in 2013.
However, Kuroda does still remain optimistic with regards to the quantitative and qualitative easing policy he put in place last April.
With Friday in sight, speculation that Japan is finally withdrawing from an extensive period of deflation could be revealed by way of Japanese Consumer Prices.
Wednesday has seen Japan release encouraging data for their PPI Services, rising from the former 3.4% to growth of 3.6%. The forecast of 3.3% has been confidently beaten, with the result surprising economists with a raise rather than a dip.
Although this positive result has seen the Yen relatively unchanged, the US Dollar and other currencies have been fluctuating greatly due to data releases and geopolitical tensions in Iraq.
Wednesday has brought bad results for the recently firmed US Dollar by way of a fall in Durable Goods Orders and Personal Consumption data.
Market expert Andrew Wilkinson has stated: ‘A weak durable goods reading once again puts the cat amongst the pigeons in terms of the timing and the magnitude of any money tightening from the Federal Reserve.’
With uncertainty sweeping the market about the current strength of the US Dollar, other currencies have been firming against it.
The US Dollar has fallen 0.3 percent against the Yen which could prove economists right on their predictions of a 1.5% softening this quarter.
Moreover the Dollar has seen highs of 104.13 against the Yen and lows of 100.82 this quarter, pertaining to a 3.31 Yen alteration, which is noted as the smallest alteration on record since 2012.
Wilkinson continued to suggest: ‘Short-term interest rates are likely to remain very, very low for quite some time, even after the Fed’s finished tapering, and I think that is what is really weighing on the dollar.’
With an insecure ‘Buck’, the Yen should remain steady against it, upholding its smallest movement since 2012.
The US Dollar to Japanese Yen (USD/JPY) exchange rate is currently trading at 101.7300.