Japan is set to see tons of lower tier economic data this week! Which ones can move yen’s prices?
Now that Japan has released its final GDP report, all eyes will be on manufacturing-related numbers from the world’s third largest economy.
If you’ve just tuned in, know that Japan’s manufacturing sector is taking hits amidst slower global (especially Chinese) demand. Consumer spending continues to support the economy, however.
Over the next few days we’ll see reports such as the preliminary machine tool orders (Sept 10, 7:00 am GMT), BSI’s manufacturing index (Sept 11, 12:50 am GMT), core machinery orders (Sept 12, 12:50 am GMT), and revised industrial production (Sept 13, 5:30 am GMT).
Worse-than-expected releases would mean that the Bank of Japan (BOJ) would rely even more on consumer spending to inspire economic activity. What’s more, investors could seek safe haven assets as they price in an accelerating global economic slowdown.
Overall market sentiment
Last week’s price action has told us that yen bears come out to play when there’s an improvement in risk sentiment.
If you recall, a lack of additional conflict in the U.S.-China trade negotiations and the prospect of Chinese government intervention have propped up risk trading. This week we could know more about the upcoming trade negotiations in October.
It’s not all about U.S.-China trade, though. Don’t forget that the European Central Bank (ECB) is rolling out its monetary policy decision, while U.K. policymakers could make the Brexit process and schedule clearer over the next couple of days.
And then there are CPI and retail sales data from Uncle Sam, which would keep volatility pretty active this week.
Any one of these catalysts could dictate the yen’s intraweek trends, so y’all better make sure you’re glued to the tube so you don’t miss any headlines!
Missed last week’s price action? Read JPY’s price recap for September 2 – 6!