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- Japan raises economic view, signals broader recovery
Japan raises economic view, signals broader recovery
Japan upgraded its overall view on the economy for the first time in three months in July, signalling a broader recovery in economic activity as the drag from the COVID-19 pandemic continued to fade, reported Reuters as Japan released July economic report.
Key findings
The upgrade was largely because the government turned more positive about consumption and employment amid hopes that strength in consumer activity will help shield the economy from rising risks of slowing global demand.
The government raised its view on private consumption, saying it was gently picking up as it became more optimistic about spending on services such as overnight stays and transportation.
The government raised its view on employment conditions, reporting a rising trend in the number of workers, adding that the number of women who were in regular employment was rising.
However, the government warned that attention should be paid to downside risks from climbing raw material costs and supply constraints, as well as fluctuations in financial and capital markets amid tightening of monetary conditions around the world.
USD/JPY extends corrective pullback
USD/JPY pares intraday losses around 136.50, keeping the mid-Asian rebound, following the news.
Also read: USD/JPY surpasses 135.50 as DXY recovers, Fed’s pre-anxiety hit market mood
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