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JPY Daily News
JPY's Spike Set to Hit Japan's Exports
The JPY recorded gains against all of its major currency pairs in Tuesday's trading. The most significant were against the EUR and the Pound. However, the USD/JPY pair closed at a relatively flat rate of 89.25. The JPY gained over 100 points against the EUR to close at 118.01. The GBP/JPY closed down over 200 points yesterday at 129.70. The rise of Japan's currency in recent days is owed much to Britain's Interest Rate cut, and Europe's anticipated rate cut this Thursday. As countries around the world cut Interest Rates to stem the global economic recession, the Yen has gained strength against these currencies, as people are returning to the Yen as the carry trade position is less attractive, as other world Interest Rates tumble.
The Yen's strength in recent months has led to a sharp fall in Japan's exports. Moreover, the massive increase in the Yen's strength has dramatically worsened Japan's economic recession. Last week it looked as if the Yen may lose some of its value, but as recent events have shown, the JPY's losses were short-lived. The medium-term seems bleak for Japan as the global economic crisis deepens. Only an unexpected economic recovery led by the United States will be able to rescue Japan's economy in the coming months. Therefore, expect the Japanese currency to make more historic gains against its currency pairs in the coming weeks.
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Print| # | Time | $€£¥ | Event | Per. | Prev. | Fore. | Act. | Imp. |
|---|---|---|---|---|---|---|---|---|
| 01/14 | ||||||||
| 01:00 | JPY |  Prelim Machine Tool Orders | y/y | -62.1% | * | -71.9% |  | |
| 18:50 | JPY | Core Machinery Orders | m/m | -4.4% | -8.0% | -16.2% |  | |
| 23:50 | JPY | CGPI | y/y | 2.8% | 0.8% | 1.1% |  | |
