Japanese Yen Moves Higher After May CSPI

Japanese yen is higher today, gaining ground against its major counterparts, following the release of May CSPI data. With concerns about what might be next on a global scale, there is a bit of an interest in safe haven. On top of that, with signs that the Japanese economy is recovering, there are some thoughts that the Bank of Japan won’t need to keep the yen weak.

For the month of May, the Japanese CSPI gained 3.6 per cent, beating expectations of an increase of 3.2 per cent. This news is helping the yen right now, especially with news of pullbacks in other major economies.
A little bit of the yen’s success likely comes from uncertainty and the desire for safe haven as well. Concerns about what is happening in Iraq with the advance of ISIS is weighing on sentiment to some degree, and low beta currencies like the yen are likely to receive some interest.
The main thing, though, is that the Bank of Japan might not feel the need to keep the currency weak as the economy finally begins to pick up the pace.
At 13:49 GMT USD/JPY is down to 101.7490 from the open at 101.9710. EUR/JPY is down to 138.7390 from the open at 138.7455. GBP/JPY is down to 172.9370 from the open at 173.2150.

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