Japan is scheduled to print a bunch of closely-watched reports this week! Question is, will bulls and bears pay attention to data over market sentiment?
Mid-tier economic reports
We’ve seen from last week’s price action that, while traders still mostly take its cues from global risk sentiment, economic releases from Japan can still affect the yen’s intraday trends.
This week’s production-related reports will be closely watched, as they’re important for an export-dependent economy like Japan’s.
The revised industrial production (May 20, 5:30 am GMT) is expected to maintain its 0.9% decline in March after seeing faster reductions in the previous months. Ditto for the core machinery orders (May 22, 12:50 am GMT) which could see a 0.7% decrease after clocking in a 1.8% growth in February.
The flash manufacturing PMI (May 23, 1:30 am GMT) will cap the manufacturing-related releases for the week. Word around is that it could speed up from 50.2 to an expansionary reading of 50.5.
Feel like trading other key economic figures instead? Watch out for the trade balance report (May 22, 12:50 am GMT), which would give hints on how vulnerable Japan’s trade activities are to trade war threats. Finally, the national core CPI (May 24, 12:30 am GMT) will be stalked by traders who are waiting on Kuroda’s latest threats of further easing.
Global trade jitters
What’s a trading week without trading the yen as a safe haven?
Watch out for U.S.-China trade war updates, which escalated further over the weekend when Reuters reported that Google has suspended further business with Chinese tech giant Huawei. Future Huawei phone holders could miss out on Google’s Play Store and GMail apps. Yikes!
There’s no end in sight yet for trade-related hostilities. China has hinted that it won’t make major concessions until the U.S. eases some of its policies.
U.S. and Chinese reps have also yet to schedule further talks. In fact, it’s possible that we won’t see any major progress until Trump and Xi Jinping conclude their talks in the G20 meeting next month.
Keep your eyes peeled for any moves China might make in retaliation, or any of Trump’s tweets that might hint at further action against China’s interests!
Missed last week’s price action? Read JPY’s price recap for (May 13 – 17)!