On Wednesday, the Finance Ministries of Japan released the increasing export Daya from 38% to become 49.6% year – over – year. That release is still under the expectation of 51.3 percent increase. 

However, the rising Japan export this time is the highest one in the last 41 years. That positive performance, especially in May, is because of the goods distribution rebound to the America and Europe.

Before, the export for those areas fell down to -28.3 percent because of the pandemic. Mean while, the import data in that country also increased by 12.8% to become 27.9% in May. 

That number is higher than the rising forecast of 26.6%. The Japan import jump confirmed that the domestic economy there is still moving amidst the concerns about the coronavirus spread.

The Fundamental Release is also Impressive 

Aside from the export and import report, the fundamental data in Japan also created the impressive achievement yesterday morning. One of them is about the Machinery Orders. 

Based on the release, that export increased from -2% to the 6.5%. That is still under the expectation of 8.0 percent rise. The better machinery orders data becomes the positive catalysts. 

It is especially for the economic situation in that country. It is because that report becomes one of the measurements to the capital spending in the 6 up to 9 months ahead. 

The USD/JPY Pair is Stable 

The solid economy data released in Japan yesterday morning failed to support the Yen versus US dollar movement. The USD/JPY pair is moving slightly so that their position is stable around 110.09.

Generally, the US Dollat right now is near its highest level in one month versus the other major currencies. Welcoming The Fed monetary policy announcement, the investors are preparing some anticipations. 

One of them is when there is a changing signal about The Fed’s view due to their stimulus policy. The retail sales in the United States is moving lower than the expectation made by people. 

The Trade Department in America notes that the retail sales for the May period felt to -1.3%. It was worse than the expectation of -0 6%. However, the data a month before may was revised. 

The Cause of Retail Sales Decline

The declining retail sales is caused by the public’s activities where they prefer to do a travelling and other outdoor activities than buying some goods like when the lockdown was applied. 

The rising amount of the vaccinated people makes them not scare to find the entertainments need outside. The consumers shopping growth is changing from the goods to services. 

That is happened in line with the economy normalization. An expert has been predicted that the increasing retail sales will be smaller than the previous month. The PPI data was also released. 

That producers inflation report was announced yesterday. The result is that the May PPI was increasing from 0.06% to 0.8%. Meanwhile, the core PPI is stabilization at around 0.7 percent. 

USD is Waiting for the Fed Signal

The release of both data above doesn’t give the huge impact on the dollar movement. The USD index was stable in 90.51 which was not far from the reached leevl after the 0.5% increase last month. 

The US dollar is still strong because the hot inflation report is shadowed by the cold consumer data (retail sales). The market trade yesterday was thin because it is still waiting for the FOMC announcement.

So far, the Fed’s representatives are still in their opinion that the inflation increase is temporary. That is why; the loosened monetary policy will be maintained until some times ahead. 

Howeber, the market is still pay attention to the policy change signal from the Fed. Several parties think that the rising Inflation has been so high so that the Fed may choose to do a tapering.