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Will the yen extend its gains from the previous week? Here are catalysts that could influence its price action!

Production-related reports

Traders will be looking at these numbers to see how the global economic slowdown and the U.S.-China trade war have affected demand for Japan’s exports.

The party will start with the preliminary machine tool orders on February 12 at 4:30 am GMT. Then, the producer price index (y/y) will be printed on the same day at 11:50 pm GMT and word around is that it could show a 1.0% increase on top of the 1.5% uptick that we saw in December.

Last but not the least is the revised industrial production report on February 15 at 4:30 am GMT, which is expected to maintain its -0.1% reading in December.

While they may not set the yen’s intraweek gains, reports related to Japan’s manufacturing industry could move the yen by a pip or two (or fifty) during their releases.

Preliminary GDP (q/q) (Feb 13, 11:50 pm GMT)

Japan’s economy dipped by 0.6% in Q3 2018, faster than the initial reading of -0.3% and expectations of a 0.5% decrease. Heck, it’s the steepest decline since Q2 2014!

A closer look told us that natural disasters like earthquake and flooding have weighed on capital investment and personal consumption more than analysts had expected.

This week, market geeks see Japan’s growth coming in at +0.4% in Q4 2018, which should keep Japan out of a technical recession.

Take note that an upside surprises might not energize the bulls much, as traders will still likely worry about the impact of the U.S.-China trade war and global economic slowdown on Japan’s economy.

Missed last week’s price action? Read JPY’s price recap for February 4 – 8!