Yen Rising: Market Review, July 20, 2018
The Japanese yen is strengthening against the US dollar on Friday. Currently, the pair costs 112.43. Today's morning, a few interesting reports were released in Japan. For example, business activity index across all industry and services sectors rose by 0.1% MoM in June, against 1.0% in May. This was against the expectations that the figure would stay unchanged.
According to the report, the building sector got a +0.7% boost MoM against 2.4% in the previous month. Meanwhile, the manufacturing production went down by 0.2% MoM, after rising by 0.5% in May. This is, in other words, a correction after the incredible positive May data, but this is no pullback, though.
The base inflation, in the meantime, rose by 0.8% YoY, exceeding May levels and eeting the expectations. This is positive for the yen, the GDP, and the BoJ alike, with the latter being often criticized for too dovish monetary policy.
The overall interest towards the global capital market is quite balanced, but the yen is still in demand as a safe haven asset, with Donald Trump being too aggressive in his speeches this week.
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