The Yen dropped to new lows. Overview for 07.06.2022
USDJPY updated its 20-year highs.
The Japanese Yen dropped to its 20-year lows against the USD on Tuesday. The current quote for the instrument is 132.94, the lowest since April 2002.
The key trigger for this decline was US bond yield growth, which supported the “greenback” – it added 3.04%, the biggest gain in three weeks. If this rally continues, the Yen may continue plunging.
The statistics published by Japan this morning showed that Household Spending lost 1.7% y/y in April, which is better than the March data but worse than the expected decline by 0.5% y/y.
This report is a leading indicator, and that’s why it’s very important for assessing future prospects. Slow inflation remains a strong headache for the Ban of Japan and the Ministry of Finance.
Average Cash Earnings gained 1.7% y/y in April, ahead of a 1.5% expectation but far behind the March reading.
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