The Japanese yen posted losses against its major rivals during the Wednesday’s trading session, dragged down by poor domestic macroeconomic data and the positive market sentiment.
Japan’s Ministry of Health, Labour and Welfare reported that average cash earnings rose 0.8% in April from a year ago. That was a noticeably slower rate of growth than 1.4% predicted by analysts.
Looking forward, traders wait for Friday’s GDP report. Economists predicted that it will show a decline for the second consecutive quarter, meaning that the Japanese economy has entered contraction. While the yen often has muted reaction to domestic data, significant deviations from the forecast are likely to affect the currency.
As for factors outside of Japan, market participants were focused on the signs that the European Central Bank is ready to unwind its asset purchases. The news boosted the euro, hurting demand for other currencies, particularly safer ones.
USD/JPY edged up from 109.77 to 110.19 as of 20:15 GMT today. EUR/JPY jumped from 128.59 to 129.73. GBP/JPY rallied from 146.90 to 147.78.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.