Tuesday, July 5, 2016
Japanese indicators were mostly soft last week, underscoring a weak economy. Household Spending and Retail Sales both posted declines, as the Japanese consumer continues to hold tight to her purse strings. Tokyo Core CPI continues to point to deflation, recording a second straight drop of 0.5%. Still, the yen held its own last week, benefiting from its safe-haven status. As well, the Bank of Japan remains reluctant to adopt further easing, so the yen could continue to rise and move towards the symbolic 100 level.