The Yen stopped falling. Overview for 06.04.2018

USDJPY had been growing for the entire week, but on Friday it stopped rising.

On Friday morning, the Japanese Yen reached stability against the USD. The current quote for the instrument is 107.34.

The statistics published in the morning showed that the Household Spending lost 0.9% y/y in February after adding 2.0% y/y in January and against the expected reading of +0.2% y/y. So, one can see that the indicator movement is rather mixed and a strong number at the beginning of the year doesn’t mean a reverse of the long-term tendency.

One should pay attention to the components of the report. The Private Consumption remains stable, it added 0.9% in February, the same as the month before. The Private Consumption provides 60% support to the country’s GDP, that’s why it very important to keep momentum here. The population spent less money on education and accommodation, but more on transport and fuel.

The USD got under pressure again this morning: now, the USA is trying to start more economic and trade tensions, this time with several countries from Africa. Investors barely had time to calm down after the China situation and now they have to face a new stress.

In the evening, the USA are scheduled to report on the labor market reading in March, which may make USDJPY more volatile.

RoboMarkets Analytical Department