The Japanese yen is posting modest gains against the greenback on Thursday. Traders were pleased by recent comments made by government officials about the national economy, and positive data gave a boost to the yenâs slight bump.
In the November edition of its monthly economic assessment, the Cabinet Office asserted that the economy âis recovering at a moderate pace.â Officials contend that Japanese consumption, exports, and capital spending will allow the country to rebound from its disappointing third quarter results, stemming from the string of natural disasters that struck the nation this past summer.
While researchers did warn about global uncertainties, looming trade spats, and volatile financial markets, they believe Japan can weather the storm.
The economy is expected to continue recovering. But attention should be given to risks including the effects of situations concerning trade issues on the world economy, the uncertainty in overseas economies and the effects of fluctuations in financial and capital markets.
The data suggests that Japan might receive a boost towards the end of the year.
Exports climbed in October, reversing the surprise September drop. Last month, exports surged 8.2%, which is slightly below the 9% forecast by economists. The increase was driven by shipments of automobiles, ballooning 7.3%.
Ahead of the Ministry of Tradeâs manufacturing report at the end of the month, a Reuters poll of economists suggests that factory production and retail sales will have improved in October. Industrial output is forecast to rise 1.2%, while retail sales are seen to get a 2.6% bump.
On the labor front, Japanâs unemployment is predicted to remain unchanged at 2.3%, but the jobs-to-applicants ratio will have advanced from 1.64 to 1.65 jobs in October.
The USD/JPY currency pair dipped 0.09% to 112.96, from an opening of 113.05, at 19:52 GMT on Thursday. The EUR/JPY rose 0.04% to 128.82, from an opening of 128.79.
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