Yen Weakens Despite Solid Macroeconomic Data

The Japanese yen was relatively soft today despite solid macroeconomic reports released in Japan over the trading session. The reason for the currency’s unimpressive performance was the improving market sentiment.

Japan’s retail sales rose 1.6% in April from a year ago, beating the median forecast of a 0.9% increase and the 1.0% growth registered in March. The Cabinet Office consumer confidence was at 43.8 in May, up from 43.6 in April and in line with market expectations. Yet the good economic data was unable to help the Japanese currency as fears about the political crisis in Italy eased somewhat.

USD/JPY slipped from 108.75 to 108.59 as of 9:11 GMT today. At the same time, EUR/JPY rose from 125.50 to 125.95.

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