Japanese yen gains grounds in second half of week

Posted 31 January, 2019

The Japanese yen is actively getting stronger vs the US dollar. By now the US dollar to yen exchange rate stands at 108.70. The greenback has started slackening after the US Fed Reserve meeting when the Central Bank decided to take a break in the upward revisions of the interest rates and called the market to be patient. As a result, the market participants which were ready for such decision consider this move a long pause after numerous lifting last year. This situation obviously put pressure on the dollar driving it down.

With this course of events, the Japanese economic reports are not in the spotlight now, though some figures should be mentioned. Specifically, Japan managed to line up industrial production volumes in December. As the data shows, the rate was just 0.1% down m-o-m, while the November results collapsed by 1.0% m-o-m. At the same time, the forecast was set at 0.5% decline. However, this just a preliminary assessment, though even these figures look quote optimistic.

If the industrial sector is ready to recover, this means there are signs of positive improvements of the domestic demand. The market should also study the retail sales data since if these signs are confirmed, it will indicate the breaking of negative economic trends.

Besides, the housing market has rebounded in January. The number of new housing construction contracts rose by 2.1% y-o-y following the December decline by 0.6% m-o-m.

Previous forecast

04 February, 2019 15:36

← Drilling slowdown in USA may push oil price up

Brent oil prices were on the rise last week posting the strengthening for the fourth week but still failed to break the $63/bbl handle. This level has been scaring off buyers since the beginning of the year. In short run, the market players are likely to keep studying the potential impact of US sanctions on the supply-demand balance, the sentiment of global investors in the stock markets as well as the future dynamics of US oil and petroleum prices. In particular, the $63 handle will be in the spotlight, as its break can lead to further resistance near the $64 handle.

Drilling slowdown in USA may push oil price up

Next forecast

30 January, 2019 13:48

Oil price now depends on US-China talks progress →

The oil market showed more clear price trend yesterday. The quotes managed to post some gains in the second half of Tuesday. According to the available statistics, the Brent prices moved up above $61/bbl. The market players mostly believe that the observed strengthening is related to the restrictions that were launched against Venezuela. However, some market analysts think that the hikes should be connected with better market stance towards the risk.

Oil price now depends on US-China talks progress
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