On Wednesday morning, USDJPY is trading a little bit to the downside; investors are interested in “safe haven” assets.
The Japanese Yen is once again in demand against the USD. The current quote for the instrument is 113.12.
The statistics published by Japan this morning were no surprise. The Average Cash Earnings increased up to 1.1% y/y in September, which is worse than expected (1.2% y/y), but better than in the previous month (0.8% y/y).
The Leading Economic Index dropped up to 103.9 points, the same as expected, after being 104.5 points the month before.
However, investors’ attention is not being focused on the statistics right now, but on political news, namely from the USA. At the moment, the country is counting the votes of the midterm elections. It is already quite clear that the Democrats swept into control of the House of Representatives. This is exactly what was the most intriguing thing of these elections – will Donald Trump’s party be able to keep charge of the Congress? Now, when this is all over, politicians might go back to discussing important topics that were put on hold, such as anti-Russia sanctions or the Iran situation.
In this light, investors are increasing their demand for “safe haven” assets, including the Yen.