All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
In Japan, household spending rallies in April
In April, the costs of Japanese households rallied in April for the first time for three months. According to a Reuters survey conducted on Friday such a jump will bring relief after poor consumer spending in the first quarter.
A poll of 13 market experts disclosed that households are going to shell out about 0.8% more in April than they did in 2017, after consumption went down 0.7% in March and also 0.9% in February.
In general, in Japan, sales of consumer goods managed to revive in April. Additionally, sales of spring-summer clothes turned out to be firm, sales of new vehicles edged up.
Retail sales are seen reviving and market experts suggest household spending is going to tack on.
In April, retail sales went up by 1.6% in contrast with 2017, ahead of the average prediction of 1% per annum.
Apparently, data on household expenditures is built around the fact that a family of two or more folks spends on such items as housing, food, electricity, clothing, water, transportation, education and health, while retail sales data tracks supermarkets, department stores and shops.
As the Japanese yen was steady compared to the same period of 2017, the return on investment abroad probably sank for the third consecutive month in contrast with the previous year, as some financial analysts pointed out.
The Ministry of Finance is expected to uncover data on the current account on June 8.
In April, Japanese exports speeded up because of increased supplies of cars and equipment employed for semiconductor manufacturing, dropping a hint that firm overseas demand could assist the Japanese economy to revive from the tumble in the first quarter.
The Japanese economy dipped 0.6% year-on-year during the first quarter in the face of lower investment and consumption. Additionally, export surge weakened, although market experts expect the Japanese economy to revive in the second quarter.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.