Negative global trade developments pushed the yen across the board last week. Can the bulls keep up the momentum this week? Here’s a list of the potential catalysts!
Lower-tier economic reports
One look at the forex calendar tells us that Japan will only be printing lower-tier reports this week, and that most of them are scheduled later in the week.
Bank of Japan (BOJ) Governor Kuroda, for example, will be speaking in Tokyo on Thursday at 9:25 am GMT. Will he repeat his concerns over escalating global trade tensions and their impact on economic activity?
Meanwhile, average cash earnings and household spending (12:30 am GMT) as well as the leading indicators (6:00 am GMT) reports on Friday will give clues on consumer activity in Japan. Think they will add pressure for the BOJ to step up its stimulus efforts?
These reports won’t likely cause sustained moves for the yen, but we could see a blip or two if these events show upside or downside surprises. Make sure you’re still glued to the tube!
Global risk sentiment
What’s an NFP week without trading the yen as a safe haven?
China has not only implemented higher tariffs on $60 billion worth of U.S. goods, but it’s also planning on publishing an “undesirable entities” list that would most likely ban U.S. companies from transacting with their Chinese partners.
Meanwhile, the Donald has recently targeted Mexico, another major U.S. trading partner, in his aggressive tariff policies.
Keep an eye out for plans, announcements, or tweets that would signal further escalation of global trade tensions.
Oh, and don’t forget that we’re starting another NFP week this week! Traders would probably look at this closely-watched release to confirm or calm their global growth concerns.
Missed last week’s price action? Read JPY’s price recap for (May 27 -31)!