JPY is retreating. Overview for 07.02.2023

The Japanese Yen slipped lower today despite December CPI data hitting forecasts of 4% year-on-year for both the headline and core measures. The current quote is 132.13.

Morning reports shows that household spending in Japan in December has dropped by 1.3% y/y, while a month before it had dropped by 1.2%. Meanwhile, the forecasts were quite optimistic, suggesting a decline by 0.3% y/y. These statistics are leading and give base for expecting a decline in inflation.

Meanwhile, signals from the employment market turned out positive. Average wages in December grew by 4.8% y/y upon expanding by 1.9% y/y. The forecast had suggested growth by 2.5%.

The leading indicators index in December dropped to 97.2% from 97.4%. Therefore currently the JPY is affected by the strength of the dollar.

Note!

All forecasts highlighted in this article indicates only our opinion with regards to the market, hence it shouldn't be considered as a complete or an accurate financial information