The June update of the Japanese government's monthly economic report will likely include an upgrade to their economic assessment
This will be the first upgrade since December 2016
- Citing improved consumer spending (last week the BOJ raised its own assessment of private consumption)
- Cabinet Office will say Japan "is on a moderate recovery"
In December the upgrade centred on higher exports & production as overseas economies improved:
- This time around it'll be due to improved domestic demand, which, along with improving labour markets will encourage the view of a 'virtuous cycle' starting to take hold domestically
- Consumption was downgraded in the February report
- In March the assessment was upgraded to say private consumption "remains in pickup as a whole"
The assessment should be released late this week or early next.
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This is a positive input for the yen. But not too much, the Bank of Japan is s till a long way off its inflation target.
