JPY is plummeting. Review for 16.08.2023
The Japanese yen paired with the US dollar is devaluing at a rapid pace. The current USDJPY exchange rate stands at 145.49.
Due to the interest rate differential and monetary sentiment, the JPY exchange rate remains under significant pressure. This is occurring even amid a slight adjustment in the Bank of Japan's monetary policy.
Japan's GDP for Q2 2023 grew by 1.5% q/q against the forecasted growth of 0.8% and the previous increase of 0.7%. On a year-on-year basis, the Japanese economy skyrocketed by 6.0%, exceeding expectations twofold.
The weak yen has presumably provided substantial support to exporting companies. In turn, these companies have replenished the country's budget well, allowing for the preservation of infrastructure and social expenditures.
Currently, devaluation remains the only viable option for the JPY.
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.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.