The Yen is ready to respond. Overview for 14.05.2018
On Monday morning, USDJPY is trading downwards, but investors may require a “safe haven” asset soon.
The Japanese Yen is still under pressure against the USD. The current quote for the instrument is 109.47.
The statistics published in the morning showed that the Producer Price Index added 2.0% y/y in April, the same as expected. However, this number is worse than in March, when it was +2.1% y/y.
The preliminary Machine Tool Orders report showed a slight decline: the indicator added 22.0% y/y in April after expanding by 28.1% y/y in the previous month.
There will be enough numbers from Japan, which may really make USDJPY move. On Wednesday, investors will be offered the revised Industrial Production report, which is not expected to surprise them a lot. However, the preliminary GDP report over the first quarter 2018 may attract their attention: after expanding by 0.4% q/q in the previous quarter, the indicator is expected to remain unchanged. This fact may show some hidden problems inside the country’s economy and investors will surely dislike it.
On Friday, Japan will report on the National Core CPI in April. The expected number is 0.8% y/y against the March reading of 0.9% y/y.
RoboMarkets Analytical Department
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