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USD JPY Exchange Rate Rallies as Concerns over Japanese Inflation Persist
Published: 6 Jan at 1 PM Tags: Dollar Exchange Rate, Currency Exchange, Canadian Dollar Exchange Rate, Euro Crisis, Yen Exchange Rate, Exchange Rates, Economy, Inflation,
The US Dollar to Japanese Yen (USD JPY) exchange rate rallied this morning due to ongoing concerns over Japan’s anaemic inflation rate.
US Dollar Japanese Yen (USD JPY) Bolstered By Inflation Worries
After a steady decline in the first half of the week, the USD JPY exchange rate rallied earlier this morning as investors remained concerned over non-existent inflation in Japan’s economy.
This follows a drop in Foreign Bond purchases as Japanese investments fell to -¥501.4bn the week ending December 23, after previously falling to ¥216.7bn the week before.
Japan has struggled to stimulate growth in its economy in recent months, especially in the wake of a bullish rise in the US Dollar following the election of Donald Trump in November, greatly hindering businesses purchasing power.
However, the Yen could mount a recovery later this month following the Bank of Japan’s (BoJ) latest policy meeting as the rapid decline of Japan’s currency over recent months may lead the bank to revise its forecasts for consumer pricing according to a report in Reuters.
US Dollar Strengthened by Services Data
The US Dollar has also been strengthened by a better than expected Non-Manufacturing PMI as ISM reported yesterday that growth in the service sector held at 57.2 in December. outperforming forecasts that it would slide to 56.8.
Strong demand, with new orders rising by around 4.6% helped the result to hold at a yearly high and increased optimism for future growth in 2017, As Chris Williamson, chief business economist at IHS Markit commented;
‘The US economy ended 2016 on a solid footing on which sustained growth looks set to be achieved in the coming year.’
However the report also indicated that the rate of employment had seen a notable decline, causing speculation that the US job market has peaked.
USD JPY Exchange Rate Forecast: US Employment Data May Pressure US Dollar
The US Dollar Japanese Yen exchange rate may slide later today following the release of the latest US employment figures.
Following Thursday disappointing drop in new hires in the private sector, today’s Non-farm Payroll figures could be revised down further than expected, adding pressure to the Unemployment rate, which is already expected to rise from a decade low of 4.6% to 4.7% in December.
A fall in US Factory Orders is also likely to negatively impact the ‘Greenback’ as investors forecast figures to drop from 2.7% to -2.3% in November.
Meanwhile traders in the Japanese Yen will be looking towards next Tuesday when Japan releases its latest Consumer Confidence report, with the Yen likely to be weakened if confidence falls from 40.9 to 40.8 as predicted.
US Dollar Japanese Yen (USD JPY) Bolstered By Inflation Worries
After a steady decline in the first half of the week, the USD JPY exchange rate rallied earlier this morning as investors remained concerned over non-existent inflation in Japan’s economy.
This follows a drop in Foreign Bond purchases as Japanese investments fell to -¥501.4bn the week ending December 23, after previously falling to ¥216.7bn the week before.
Japan has struggled to stimulate growth in its economy in recent months, especially in the wake of a bullish rise in the US Dollar following the election of Donald Trump in November, greatly hindering businesses purchasing power.
However, the Yen could mount a recovery later this month following the Bank of Japan’s (BoJ) latest policy meeting as the rapid decline of Japan’s currency over recent months may lead the bank to revise its forecasts for consumer pricing according to a report in Reuters.
US Dollar Strengthened by Services Data
The US Dollar has also been strengthened by a better than expected Non-Manufacturing PMI as ISM reported yesterday that growth in the service sector held at 57.2 in December. outperforming forecasts that it would slide to 56.8.
Strong demand, with new orders rising by around 4.6% helped the result to hold at a yearly high and increased optimism for future growth in 2017, As Chris Williamson, chief business economist at IHS Markit commented;
‘The US economy ended 2016 on a solid footing on which sustained growth looks set to be achieved in the coming year.’
However the report also indicated that the rate of employment had seen a notable decline, causing speculation that the US job market has peaked.
USD JPY Exchange Rate Forecast: US Employment Data May Pressure US Dollar
The US Dollar Japanese Yen exchange rate may slide later today following the release of the latest US employment figures.
Following Thursday disappointing drop in new hires in the private sector, today’s Non-farm Payroll figures could be revised down further than expected, adding pressure to the Unemployment rate, which is already expected to rise from a decade low of 4.6% to 4.7% in December.
A fall in US Factory Orders is also likely to negatively impact the ‘Greenback’ as investors forecast figures to drop from 2.7% to -2.3% in November.
Meanwhile traders in the Japanese Yen will be looking towards next Tuesday when Japan releases its latest Consumer Confidence report, with the Yen likely to be weakened if confidence falls from 40.9 to 40.8 as predicted.
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Source: moneytransfer.co.uk