This is an older news update for the Japanese yen. Click here to view the latest daily update.

Japanese yen daily update for 7th December 2017

BY DEB SHAW | 

The yen was stronger yesterday but is weakening today. Looking at USD/JPY, the pair fell after President Trump announced that the US would recognize Jerusalem as Israel's capital. Given the yen's sensitivity to political risks, the currency strengthened on the news. Today, the yen is weakening as expectations for US tax cuts rises. As House and Senate Republicans begin negotiations, there are signs that progress is being made. Looking at the latest news from Bloomberg, proposals being discussed include higher corporate tax rates and retaining the SALT deduction. Our medium-term outlook on the yen remains bearish. 

USD/JPY is currently trading just above 112.50. Looking at the euro vs. the yen, EUR/JPY is up and is currently trading above 132.70. 

This is a fairly light week for economic data releases relating to the yen. Consumer confidence was stronger relative to the last print (44.9 vs. 44.5 prior). The Coincident Index (0.3 vs. -1.4 prior) and the Leading Economic Index (-0.4 vs. -0.7 prior) were higher than the previous print. Cross-border stock (-¥167.1b) and bond (-¥208.1b) investments continue to result in net capital outflows. Finally on Friday we’ll get the Eco Watchers Survey and Q3 GDP growth. Last week, household spending was better than expected.  

Updated 
Outlook
Bearish

Subscribe to the MarketsNow Japanese yen daily update