A combo of disappointing domestic data and positive market sentiment weighed on the yen last week. Can the bears sustain their momentum this week?
Here are a few factors you should consider:
Japan’s lower-tier data releases
It’s a mix of consumer and business-related releases for Japan this week.
The consumer confidence (expected to remain at 41.5) and Economy Watchers sentiment (47.6 expected, 47.5 previous) are first as they’re scheduled later today at 6:00 am GMT.
Core machinery (3.0% expected, -5.4% previous) and preliminary machine tool orders will then be printed on Wednesday during the Asian session.
As we’ve seen in the yen’s price movements last week, lower-tier data releases like the ones scheduled in the next couple of days could support any intraweek trend that might pop up for the low-yielding currency.
Market risk sentiment
Another week, another chance to trade the yen as a safe haven?
One look at the forex calendar will tell you that there are not a lot of top-tier releases scheduled over the next couple of days. Your best chances at volatility include the ECB’s monetary policy decision; the U.K.’s monthly GDP release, and the Fed’s meeting minutes.
Oh, and don’t forget to watch the newswires for any Brexit-related headlines, will you? Until Theresa May gets an approval for another extension, Britain just might exit the EU without a deal!
Missed last week’s price action? Read JPY’s price recap for April 1 – 5!