Not even the BOJ’s outlook changes steered yen traders away from pricing in overall risk sentiment. Will this week’s events allow the yen to dictate its own beat?
Here’s a list of market releases you should watch out for:
Lower-tier economic reports
Japan’s consumer-related reports scheduled on Wednesday’s Asian session could confirm or weaken the BOJ’s decision to cut its inflation outlook last week.
Watch out for the annualized retail sales (12:50 am GMT), which is expected to print a 0.9% growth in December after November’s 1.4% increase. Then, a few hours later we’ll see the consumer confidence (6:00 am GMT) data, which is seen at 42.5 in January against the 42.7 reading in December.
We’ll also get hold of production data in the form of the preliminary industrial production report. Analysts see a 0.5% decline in December after an upwardly revised 1.0% decrease in November.
Last but not the least is the final manufacturing PMI, which isn’t expected to budge from its 50.0 reading in January.
Market risk sentiment
As mentioned in the yen’s weekly recap, the safe haven lost pips across the board when a slew of economic themes contributed to an improved market risk appetite.
Let’s see if those same catalysts can sustain their momentum this week. The U.S. government has temporarily ended its shutdown, which could turn focus back to Uncle Sam’s data releases and the U.S.-China trade negotiations.
Britain’s policymakers are also scheduled to vote on alternative Brexit plans this week. If we get more uncertainty than clarity from this week’s brouhaha, then we might see higher-yielding assets lose points to the yen.
Missed last week’s price action? Read JPY’s price recap for Jan. 21-25!