The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
Japan’s March household spending tacks on for the first straight month
In March, Japan's household spending went up for the fourth month in a row, although dismal factory output along with exports could keep pushing the Japanese economy into a moderate contraction in the first quarter.
As a matter of fact, household spending is antic pated to have soared by 1.7% last month from 2018, which is the same surge recorded in February.
The employment situation happens to be favorable, although wage recovery is still mild. That’s the reason why private consumption lacks momentum. It has been reported by the chief economist at Norinchukin Research Institute, Takeshi Minami.
Still, domestic demand is going to be relatively firm till a scheduled sales tax lift in October. However, after that, the Japanese economy is seen going down unless external demand gets stronger enough to have the Japanese economy boosted.
Japan is expected to have its sales tax lifted to 10% from October’s outcome of 8% after Prime Minister Shinzo Abe delayed it two times.
The last sales tax lifts from 5% in 2014 delivered a blow to private consumption, accounting for nearly 60% of the Japanese economy.
The Japanese cabinet is going to officially uncover household spending data on Friday at 8:30 am Japan time, on May 10.
As recent data revealed, Japan's industrial output headed south in January-March at the fastest tempo for nearly five years, while exports went down for the fourth month in a row.
The common currency hit $1.1143 having slumped to $1.1125 overnight. The UK currency reached $1.2909, having declined to a two-week minimum of $1.2867, on soaring signs of political instability because the European parliamentary election campaign escalates.
The market sentiment is mixed as investors are weighing on additional government support measures amid increasing virus cases throughout the world.
The market sentiment is mixed ahead of the US consumer sentiment report.
The market sentiment improved after the USA reported some decreasing in coronavirus hospitalizations. Gold dropped below $2 000 and the US dollar dipped down, while stocks surged. Let’s have a closer look.
The RBNZ will make the monetary policy statement on August 12 at 5:00 MT time!
The market has started the week with a mixed sentiment…