The Yen remains in demand. Overview for 29.10.2020

USDJPY is falling and not slowing down its decline; investors are interested in the Yen.

The Japanese Yen continues strengthening against the USD. The current quote for the instrument is 104.25.

The investment, and not only, world is struck with panic caused by a rapid spread of the second wave of COVID-19 and new quarantine restrictions introduced by many countries in order to avoid a collapse in their health care systems. Another thing that makes things less optimistic is the upcoming presidential elections in the USA, which implies a lot of risks. Taken together, all these factors taken together provide the Yen with stable support. 

Today, the Bank of Japan had another meeting, where it left its monetary policy intact: the interest rate remained at -0.1% and the QE program – unlimited. At the same time, the Japanese regulator is interested in further targeting 10-year bond profitability. Nothing new. 

On the other hand, the BoJ revised its expectations for the current fiscal year, which is to end in March 2021. The GDP is anticipated to lose 5.5% against the previous estimation of -4.7%. Deterioration in the forecast can be explained by declines in parameters of consumer and household spending this summer. 

Market players never heard from the Bank of Japan any hints at new methods to spur the country’s economy. It’s difficult to say whether it is good or bad but time is passing by and the Japanese economy is getting more and more depressed.