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Friday, June 21, 2024

Japan Economic Data in Focus as Yen Strengthens on Weaker US Growth

Japanese Economic Data in Focus as Yen Strengthens on Weaker US Growth

The Japanese yen has strengthened against the US dollar today, with USD/JPY falling 0.62% to 156.691 as of writing. This comes after data showed slower-than-expected growth in the US economy for the first quarter of 2024. Investors are now turning their attention to a batch of key Japanese economic indicators due for release later today for signs around the health of Asia’s second-largest economy.

USD/JPY 5-Day

Consumer price inflation in Tokyo is expected to rise slightly based on preliminary estimates. The annual pace of growth in Tokyo CPI is seen rising to 2.0% in May from 1.8% in the prior month, while core inflation is forecast to also rise to 1.9% from 1.6%. Should the official figures meet or overshoot estimates, it would reinforce expectations that inflation is starting to increase in Japan to meet their monetary policy goal.

Other data on tap includes the national unemployment rate, expected to hold steady at 2.6% in April. The jobs-to-applicants ratio, a measure of demand for workers, is also seen unchanged at 1.28. Retail sales are projected to show an increase of 1.9% in April versus the prior month’s 1.2%. Industrial production may also cool, with monthly growth seen slowing to 0.9% after March’s 4.4% jump.

If the economic data points to higher inflation in Japan, it could be what the BOJ wants. The yen could potentially strengthen if this happens as the BOJ has a high chance of more rate hikes coming this year.

Lazarus
Lazarushttps://ljlnews.com
Publisher and editor of LJLNews. I am a Stock Market enthusiast, with an interest for politics. I hope you enjoy reading the articles! Contact me at: Lazaruslucas@ljlnews.com

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