Japan is in for a light data week! Does this mean yen bulls and bears should take a chill pill? Here are catalysts that might affect the yen’s price action.
Quarterly Tankan reports
Reports printed earlier today showed the sentiment of Japan’s biggest manufacturers falling to a three-year low in Q2 2019.
A closer look tells us that chemicals, iron & steel, food & beverages, and machinery took the biggest hits, while sentiment improved in textiles, lumber & wood products, and petroleum & coal industries.
Meanwhile, non-manufacturing surveys reflected sentiment improving from 21 to an index reading of 23 in Q2 2019.
Reaction to the yen has so far been muted but watch your charts closely in case the bulls and bears come in during the Asian session!
Market risk sentiment
If you’ve read last week’s price reviews on the major currencies, then you’ll know that the high-yielding ones took pips from their lower-yielding counterparts as investors celebrated the prospect of major central banks (but mostly the Fed) making stimulus rain on their economies.
Only the RBA will publish its monetary policy decision this week but keep close tabs on other central bankers that might hit center stage and share their monetary policy biases!
Aside from central bank action, you might also want to pay attention to updates that might affect global trade conditions.
We know that Trump and Xi Jingping have agreed on a trade truce over the weekend, and that markets are cheering the forestalling of further tariffs.
How long do you think the optimism will last? Will their reps make headway towards a trade deal this week?
Missed last week’s price action? Read JPY’s price recap for June 24 – 28!