Mixed Domestic Economic Indicators Don’t Prevent Rally of Yen

The Japanese yen was strong today. Some market analysts speculated that the reason for that was the worsening market sentiment. But the Swiss franc, another safe currency, was soft today, making such speculations questionable. While there were plenty of macroeconomic indicators in Japan today, they were mixed and gave little help to the currency in finding direction.
Tokyo core Consumer Price Index rose 0.7% in August on an annual basis. That was a slower rate of growth than 0.8% predicted by economists and 0.9% registered in July.
The unemployment rate edged down unexpectedly to 2.2% in July from 2.3% in June.
Industrial production rose 1.3% in July from the previous month on a seasonally adjusted basis. That was a far better result than an increase of 0.3% predicted by analysts and a drop of 3.3% registered in June.
Retail sales dropped 2.0% in July, year-on-year. That is compared with the predicted fall of 0.6% and an increase of 0.5% logged in the previous month.
USD/JPY fell from 106.51 to 106.29 as of 15:53 GMT today, touching the low of 106.10 intraday. EUR/JPY plunged from 117.75 to 116.80. GBP/JPY dropped from 129.69 to 129.40.

If you have any questions, comments, or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *