Another week, another chance to trade the yen as a safe haven? Here are economic catalysts you should watch out for!
Japanese dump (May 31, Asian session)
Japan may not print as many economic releases as it had last week, but you can bet pips that a lot of traders will still look at this week’s list for potential intraday volatility.
Tokyo’s core CPI (12:30 am GMT) – a widely considered leading indicator of the country’s inflation – will start the party and is expected to print a 1.2% after a 1.3% gain in April.
The unemployment rate, which will be released at the same time, could do better with a 2.4% reading against April’s 2.5% figure.
Next up is the preliminary industrial production (12:50 am GMT). The report could provide clues on how Japan’s manufacturing industry is coping with global trade tensions and easing demand, so make sure you’re glued to your tube!
Meanwhile, the annualized retail sales is also scheduled at 12:50 am GMT though it will most likely maintain its 1.0% increase in April.
Japan’s consumer confidence and annualized housing starts will conclude the parade at 6:00 am GMT. Watch out for significant hits or miss, which could affect demand for the yen during the trading session!
In case you missed last week’s price review, then you should know that the yen clobbered its major counterparts as traders priced in their concerns over the (lack of) U.S.-China trade negotiations; Theresa May’s resignation, uncertainty over the EU elections, and the escalating U.S.-Iran tensions.
Expect more of the same themes to go around spooking and/or encouraging the markets this week. Watch out for developments in the U.K.’s political scene or any of Trump’s official statements (read: tweets) that might talk about the U.S.’ stance on China and Iran.
Missed last week’s price action? Read JPY’s price recap for (May 20 – 24)!