The Yen is correcting. Overview for 08.01.2020
On Wednesday afternoon, the Japanese Yen is correcting against the USD after a pretty volatile beginning of the month. The current quote for the instrument is 108.42.
Today’s numbers showed that the Consumer Confidence Index in Japan increased up to 39.1 points in December after being 38.7 points in the previous month. However, the indicator turned out to be worse than expected, 39.6 points, which is not good.
The Yen was in a great demand ahead of news of escalation in the US-Iranian conflict after the Iranian major general Qasem Soleimani was killed in a targeted U.S. drone strike. Still, the conflict it didn’t have any continuations and the current demand for “safe haven” assets, including the Yen, is going down. However, it is important to remember that the current situation is as “fragile” as before: even theoretical scenario of what may happen are very frightening, which means that the Japanese currency may yet get pretty much stronger against the USD.
Significant strengthening of the Yen may do some harm to the Japanese economy and make the Bank of Japan revise its monetary policy sooner than it is expected.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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