The Yen is skyrocketing. Overview for 28.02.2020
On the final trading day of this winter, the Japanese Yen is strengthening against the USD the current quote for the instrument is 108.82.
After all, market players do require “safe haven” assets as their panic relating to the Chinese coronavirus and its transmission continues. When one looks more closely, it can be seen that nothing critical is going on and nothing critical even can’t be happening, it just turned out that indices and assets were too expensive and badly needed corrections, but couldn’t find a good reason for them. Now, they’ve got this reason, and both media and speculators are successfully hyping on it.
The statistics published by Japan this morning showed that the Unemployment Rate went up from 2.2% in December to 2.4% in January. The indicator wasn’t expected to change, that’s why the actual reading was quite surprising.
The latest numbers once again draw attention to the problems inside the Japanese economy, which remain very serious. Sooner or later, the Bank of Japan will have to expand the QE program in order to keep the country’s economy afloat.
The current strengthening of the Yen is not very positive of Japanese exporters.
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