Could Demand for the Yen Rise?


Sep. 6 2017, Updated 9:06 a.m. ET

Yen lost ground to US dollar last week

The surprise turnaround in the US dollar after the August jobs report on Friday, September 1, 2017, saw the Japanese yen (JYN) lose its gains from August. For the week ended September 1, the Japanese yen (FXY) closed at 110.27 against the US dollar (UUP), depreciating 0.83%. Economic data reported from Japan included household spending, which was reported below expectations at -1.9% for July, and industrial production for July, which fell 0.80%. The only positive economic data was the 1.9% increase in retail sales for July, which beat the market expectation of a 1.0% growth.

The Japanese equity markets (EWJ) also remained positive with the Nikkei 225 (JPXN) posting a weekly rise of 1.2%.

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Speculators reduced bearish bets on the yen

For the Japanese yen (YCL), speculators reduced their bearish positions for the seventh consecutive week. According to the latest Commitment of Traders Report released on September 1, 2017, by the CFTC (Chicago Futures Trading Commission), currency market speculators’ net positions in the yen (YCS) have increased by 5,562 contracts. The total net speculative positions stood at -68,524 contracts compared to -74,086 contracts the week before.



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