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Fundamental Forex Analysis

Japan govt to cut its economic assessment this month due to coronavirus impact

Citing two sources familiar with the matter, Reuters reported that the Japanese government is likely to cut its economic assessment in its March 26 March monthly report.

The sources added that further cuts to the assessment on consumption, capital spending and corporate profits are also expected, per Reuters.

Meanwhile, it was reported that the Bank of Japan (BOJ) purchased exchange-traded funds (ETFs) for the fifth time so far this month, in a bid to stabilize the stock markets.

The BOJ bought another JPY101.4 billion worth of ETFs today. The Japanese benchmark, the Nikkei 225 index, ended 4% down on Thursday.

USD/JPY reaction

The Japanese yen remains unperturbed by the negative updates at home, as it continues to draw bids from the increased safe-haven demand, in the wake of coronavirus-led global stocks meltdown.

USD/JPY trades around 103.70, down 0.80%, at the press time.

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