On Thursday afternoon, USDJPY is moving upwards; investors receive rather mixed signals from the market.
The Japanese Yen is conceding to the USD on Thursday. the current quote for the instrument is 107.81.
The statistics published earlier today showed that the Manufacturing PMI went from 41.9 points in April to 38.2 points in May. This decline is an excellent description of what is happening in the country’s economy: based on the rather limited activity of consumers, companies and enterprises have to reduce their activities as well in order to avoid bigger losses. That makes sense, although it sounds pretty awful.
At the same time, global market players are seen to increase their interest in risks and that’s not good for the “safe haven” Yen.
Investors’ attitude to risks is improving amid activities of American policymakers to introduce another stimulus package, as well as discussions between Germany and France to create a European Union fund for supporting the region’s economies.
The fact that policymakers from all over the world are doing their best to eliminate consequences of the coronavirus pandemic allows to believe that the global economy might recover faster and more effectively than predicted earlier. This, in its turn, increases the demand for risks.