Japan upgrades view on consumption; economy still in severe situation

Dhwani Mehta FXStreet

In its monthly report released on Friday, the Japanese Cabinet office raised its view on consumption while lowering its assessment of imports.

The government, however, kept the overall economic view unchanged this month, noting that “the economy shows signs of picking up but the situation remains severe due to coronavirus.”

Additional details (via Reuters)

“The government said the impact from policy measures at home and improvement in economic activity overseas supported hopes for a continued rebound in the economy.”

“Japan's government upgraded its view on private consumption for the first time in seven months due to more robust domestic demand for household electronics and higher nationwide hotel occupancy rates, especially in Hokkaido in northern Japan.”

“The government stuck to its assessment that exports are picking up. But it downgraded it view on imports for the first time in seven months.”

Market reaction

USD/JPY is losing ground in tandem with the US dollar, as the sentiment remains lifted on the US stimulus hopes. The spot was last seen trading at 105.58, shedding 0.20% so far.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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