Japan’s government cuts view on exports for first time since May 2020

In its March economic assessment report, the Japanese government said that the economy shows some weakness amid the ongoing post-covid pandemic recovery while downgrading its view on the country’s exports.

Additional takeaways

“The economy shows some weakness, though it continued picking up amid severe conditions due to the coronavirus.”

“The government in March cut its view on exports for the first time in 10 months.”

“The authorities urged attention to how the spread of COVID-19 is affecting the Japanese and other economies, days after the end of a state of emergency in the capital, Tokyo, and three neighboring prefectures.”

“The government upgraded their view on bankruptcies and of firms' assessment of business conditions, saying they were showing signs of picking up, though severe spots remained.”

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Market reaction

USD/JPY remains under pressure near 108.70 amid risk-off market mood, ahead of the Fed Chair Powell’s and Treasury Secretary Yellen’s testimonies.