USDJPY is recovering based on geopolitical news.
The Japanese Yen is weakening against the USD on Friday morning. The current quote for the instrument is 106.62.
In the morning, Japan reported on the Household Spending, which is a very interesting and important indicator. In January, it added 2.0% y/y after losing 0.1% y/y the month before and against the expected reading of -1.1% y/y.
In December and November 2017, the indicator was also decreasing as it lost 0.1% and 1.7% respectively. The Japanese population is still very cautious when it comes to spending money because salaries in the country are growing very slowly. However, today’s recovery of the indicator is surely positive for the Japanese inflation.
The Bank of Japan finished its two-day meeting today. The results of the meeting were no surprise: the key rate remained at -0.1% and the QE program volume – at 80 trillion Yen. Both decisions were approved by 8 votes for and 1 against.
However, most of all the Yen is influenced by geopolitical news. In the morning, it became known that Donald Trump agreed to meet the North Korean leader Kim Jong-un. In this light, the USD is recovering and the Yen is getting under pressure.