According to statistics released today by Chinese National Bureau of Statistics, industrial production in China increased by 6.2% in June against the rise of 6.0% in May. Chinese GDP in Q2 was the same as in Q1 at the level of 1 6.7%. The rise in economic activity in the country and effective stimulus measures have provided some support to the slowing economy. Some economists even increased their forecasts for GDP growth in China. Strong economic data of China has improved investors’ sentiment, and also triggers sales in the yen, which is considered a safe haven asset.
At the end of the Asian trading session Japanese stock index Nikkei Stock Average rose by 0.7% to 16497.00 points. World stock indices have also grown on Thursday after the indication that the Bank of England can introduce additional stimulus measures next month.
Today, Japanese yen fell against other major currencies at the Asian trading session. The JPY fell by almost 1% against the USD and reached new three - week lows.
Many economists believe that the Bank of Japan can cut taxes and increase the volume of purchase of the government bonds.
It is likely that the pair USD/JPY will be traded in the range of 105.00 - 108.00 until the meeting of the Bank of Japan on 28-29 July.
Today at 14:30 (GMT+2) US retail sales data and consumer price index will be released. These indices are the key indicators for evaluation inflation rate in the country. They also changes in the buying mood in the country. Output of industrial production in the USA will be known at (15:15 GMT+2).
It is worth paying attention to the speech of Mark Carney, governor of the Bank of England at 14:00 today. It will be interesting to hear his reasons for keeping interest rate in the UK at the level of 0.5%.