The Yen started strengthening. Overview for 23.05.2018
USDJPY is falling for the second consecutive trading session and moving away from its five months highs.
On Wednesday, the Japanese Yen is rising against the USD. The current quote for the instrument is 110.51.
The statistics published by Japan in the morning showed that the Flash Manufacturing PMI decreased up to 52.5 points in May after being 53.8 points the month before and against the expected reading of 53.6 points. All Industries Activity didn’t change in April after adding 0.4% m/m in the previous month; the expected reading was +0.1% m/m.
One should pay attention to the fact that the Japanese statistics have been quite unstable and shown very mixed signals recently. It may be caused by both a seasonal factor (this spring, the country really experienced some problems) and some old issues in the Japanese economy relating to prices and demand.
However, today’s external news is in favor of the Yen. Investors are discussing a possibility of the meeting between the US President Donald Trump and the leader of North Korea Kim Jong-un. Apart from this, some pieces on news say that there might be more complications when it comes to trade wards between the USA and China, although earlier both countries decided to cancel customs duty on imports for some time.
Such pieces of news, which aren’t actually news, contain a lot of rumors, guesses, and speculations and usually increase investors’ interest to “safe haven” assets, including the Yen.
RoboMarkets Analytical Department
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