Friday, October 8, trading floors are closed and U.S. investors to slow down the game: it's time to think. Too aggressive a growth of the euro in recent weeks, and the strengthening of the yen once again began to take over the character.
The main event on Friday was the news that the Japanese government approved a new package of economic incentives in volume 5.05 trillion yen (61 billion U.S. dollars), designed to stop the growth of the country's currency and deflation, according to Associated Press. Incentive plan will be presented at a hearing in Parliament under the supplementary budget in October.
This message is somewhat weakened the yen: at 9:00 GMT on October 8, it was quoted at around 82.35 yen to the dollar. However, this half-measure is unlikely to significantly change the situation. First, the stimulus package could wait long for the approval of Japanese lawmakers, and, second, 61 billion dollars - a small amount in the economy of the country. Recall that only the intervention of 16 September the Bank of Japan spent $ 20 billion, while the yen is currently higher than it was then.
Thus, the allocated funds would last only three interventions, but the success of these actions is not obvious. For example, recent statistical data for Japan showed a decrease in exports and industrial production, as well as the deterioration of corporate sentiment. Tokyo has already spent 915 trillion yen for measures to stimulate the economy. A central bank of Japan on the eve brought a basic discount rate to zero, placing it in the range of 0,0-0,1%. Apparently, the players look to Japan even more aggressive measures, but what exactly should be done is not very clear.
