An improvement in risk appetite dragged the low-yielding yen lower last week. Can the safe haven recover this week?
Here are potential market movers you should watch out for:
Flash manufacturing PMI
Japan’s manufacturing saw a slowdown in July, as weaker demand from China and tensions between Japan and South Korea weighed on production for a seventh month in a row.
This week market players expect the manufacturing PMI to recover from 49.4 to 49.8 for the month of August.
Take note that the Fed is printing its meeting minutes a few hours before Japan’s data release and the euro zone is publishing its own set of PMIs during the European session.
This means that, unless we see significant strengths or weaknesses in Japan’s PMI numbers, then it’s likely that the report will only influence the yen’s price action the first few hours after the release.
Overall risk sentiment
Another week, another chance to trade the yen as a safe haven!
This week, pay close attention to headlines related to the U.S.-China trade war.
Now that the Donald has met with “Tim Apple,” his administration can now tweak its delay of imposing tariffs on select products or even add new ones to inflict maximum pain on U.S. companies’ competitors (or at least their financial markets).
Meanwhile, keep close tabs on updates over the big Jackson Hole meeting later this week.
Central bankers and finance chiefs have a lot to talk about including issues like global growth slowdown, Brexit uncertainties, trade-related risks, and yield curve trends.
Don’t miss updates so y’all know what exactly monetary and financial authorities are concerned about these days!