The yen’s tight ranges were disrupted by last Friday’s trade-related headlines. Will the theme continue to dominate price action this week?
Here are events you should pay close attention to if you’re trading the yen this week:
Japan’s data dump
Though it has a couple of reports scheduled throughout the week, Japan’s economic calendar won’t come alive until near the end when the economy prints a bunch of lower-tier data releases.
Retail sales, which came in flat in June, is expected to dip by 0.6% in July. The annualized reading, which showed a 0.5% pop from a year ago, is now estimated at 0.3%.
The preliminary industrial production estimate is expected to fare better with an improvement from -3.3% in June to 0.4% in July. Heck, even the annualized reading is now expected to print at -0.5% after last month’s -3.8% reading!
And then there’s Tokyo’s core CPI, which is seen as a leading indicator for the nation’s price trends. The report is expected to show 0.7% annualized growth in August, which is still lower than the 0.9% uptick that we saw in July.
Last but not the least is Japan’s unemployment rate and jobs-to-applicants ratio, which are expected to maintain their 2.4% and 1.61 readings respectively.
These reports don’t usually cause sustained price action for the yen, but they can move the yen by a pip or two (or fifty) if there are no other economic themes at play during the releases!
Overall risk sentiment
A general lack of top-tier data means a lot of traders will be using the yen to trade their risk sentiments.
The biggest story of the week is the U.S.-China trade war, which got a lot more heated after China announced its intentions to slap tariffs on $75 billion worth of U.S. products. This prompted the Donald to retaliate by “ordering” U.S. businesses to find manufacturing sites other than China.
Will China or the U.S. step up their efforts to win the trade war? Or will this week’s headlines turn our focus on other issues?
Speaking of other issues, G7 leaders are set to conduct meetings over the next couple of days. We could see updates on Brexit negotiations, Iran’s nuclear deal, and concerns about global trade tensions, so y’all make sure you’re around when the headlines hit!
Missed last week’s price action? Read JPY’s price recap for August 19 – 23!