The Yen is strengthening again. Overview for 12.10.2020

USDJPY is falling significantly; investors are in need of “safe haven” assets again.

The Japanese Yen is strengthening against the USD on Monday due to the increased demand for “safe haven” assets among investors. The current quote for the instrument is 105.47.

The statistics published in the morning showed that the Core Machinery Orders added 0.2% m/m in August after expanding by 6.3% m/m in the previous month and against the expected reading of -1/0% m/m.

The PPI in Japan went down by 0.8% y/y in September after losing -.6% y/y the month before and against the expected reading of -0/5% y/y. 

The Yen is becoming more and more popular due to the increased demand for “safe haven” asset among market players: the coronavirus continues spreading around the globe very quickly, the presidential race in the USA is not passing off without a hitch, while the global economy is recovering after the first wave of the pandemic less actively than it was expected to. 

Some of the latest news worth paying attention to is that the Bank of Japan is doing the work for the long run. It became known recently that the Japanese regulator was going to test its own digital currency the following year. Probably, it may happen not earlier than April but the existence of such plans itself is very interesting and intriguing. However, it’s a rather neutral piece of new for the fiat Yen because a lot of time will pass before digital assets are able to become part of people’s everyday life.