Dollar – 3 Reasons Why Recovery Won’t be Easy | BK Asset Management: "JPY: Nikkei Loses 7% in 1 Week
There was very little consistency in the performance of the Japanese Yen today. The rally in USD/JPY lifted EUR/JPY, NZD/JPY and CHF/JPY but provided no support for AUD/JPY, CAD/JPY and GBP/JPY. Part of the problem was the continued decline in Japanese stocks. After taking a one day break, the Nikkei fell another 2.38% overnight. Unfortunately Japanese equities are vulnerable to further losses as consumption tax starts to take its toll on Japan’s economy. The views of the market continue to be at odds with the BoJ who believe that “consumer spending will remain firm after sales tax hike due to improvement in job market and wages” according to the March meeting minutes. Only time will tell so we’ll have be patient and wait to see if consumers are as resilient as the central bank expects. Meanwhile the corporate goods price index came in slightly weaker but had no major impact on the Yen."
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