Yen decline slower on May 16

Posted 16 May, 2018

On Wednesday, Japanese yen has stopped weakening vs the US dollar, though further changes remain possible. The yen-to-US dollar exchange rate stays were recorded at some 110.18. The American currency had strong positions even on weak April retail sales data in the USA released yesterday. For now, 10Y US state-bonds yield keeps rising, staying above 3 %, while the possibility of the further upturn on American platforms persists as well despite 10-day buying. As a result, the greenback seems to have good positions even despite below-expectation results in April.

Japan reported sluggish data this morning. According to the preliminary estimate, Q1 GDP decreased 0.2% q-o-q (forecast – 0%; Q4 2017 – 0.4%). The year-to-year figures were also low. According to the released data, GDP in January-March dropped by 0.6%, compared to a 0.6% upturn earlier.

Current Japan's figures show that the country can face certain problems unless the results are connected with local and seasonal factors. The economy has collapsed for the first time over 8 quarters. As the statistics show, some decline was recorded in business spendings, though private consumption remained unchanged. This means that the real problems lie deeper. Industrial production rose 1.4% y-o-y in March, which is well above the forecast (1.2% y-o-y).

Previous forecast

16 May, 2018 14:56

← Euro may spur buying on price bounce

The European currency became a victim of bullish factors combination, which drives the rate down to new 2018 bottom. Euro faced boosted pressure in mid-April after the greenback resumed recovery on all fronts seeing growing US state bonds and possible settlement of US-China trade dispute. Moreover, the European currency was depressed by softer expectations...

Euro may spur buying on price bounce

Next forecast

15 May, 2018 16:17

Euro puts up with current economic conditions →

The European currency has recently reached 10-day peaks against the US dollar, but then stuck near 1.20 handle, which is said to remain now the key guideline for the bulls making upward euro attempts. Later, EUR-USD rate dipped to 1.19 or even below. With the current German and euro-area reports, it becomes clear that the economic growth has slowed down in the region...

Euro puts up with current economic conditions
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