Yen Little Changed as Japanese Consumer Confidence Prints Higher
THE TAKEAWAY: The Japanese Consumer Confidence Index rose > Though the increase from the previous month was unexpected, its effect on markets was minimal > No change in USDJPY trend
The Japanese Consumer Confidence Index experienced an unexpected boost from 38.9 to 40.0 in January shows data released by the Economic and Social Research Institution. Analysts and markets expected a decrease in consumer confidence to 38.5. The index now stands at its highest level since late February 2011.
Due to its relatively minor influence in the market, the unexpected increase in the measure appeared to hold no sway in the USDJPY.
Though an increase in consumer confidence might suggest a need to increase interest rates in the future, given the Japanese Yen’s deflationary nature, a move by the Bank of Japan anytime soon is far-fetched. Analysts expect a zero percent probability that the BOJ will raise rates in the next 12 months.
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