Risk appetite dragged the low-yielding yen against its counterparts last week. Will the downtrend continue this week?
Japan won’t be printing any major data releases over the next couple of days, but we will see a bunch of consumer-related reports that could support the Bank of Japan (BOJ)’s recent hints of further monetary easing.
The household spending report (Mar 7, 11:30 pm GMT) is first, followed by the annualized average cash earnings coming up during the Asian session on March 8. Last but not the least is the Economy Watchers Sentiment report also scheduled on March 8, this time at 5:00 am GMT.
The reports don’t usually cause sustained price action for the yen, but they can cause a blip or two on its intraday price action if they print significant hits or misses.
Overall risk sentiment
Another week, another chance to trade the yen as a safe haven!
With only a couple of weeks until Britain is scheduled to exit the EU, all eyes will be on PM Theresa May and how serious she is on keeping the hard Brexit option on the table. If you’ve just tuned in, know that market players are low key expecting May to extend the Brexit deadline.
Word around the hood is that the U.S. and China are also close to making a trade deal that could lift most of the U.S. tariffs and end the trade tensions between the world’s largest economies.
If we do see updates over the next couple of days, then traders will likely be more confident taking risks and buying higher-yielding bets.
Missed last week’s price action? Read JPY’s price recap for Feb. 25 – Mar. 1!