A bit of risk aversion pushed the yen higher across the board last week. Will we see the same themes this week?
Here’s a list of catalysts that might affect the yen:
Tomorrow at 6:30 am GMT Bank of Japan (BOJ) Governor Kuroda is scheduled to give a speech before business leaders in Osaka.
Not many are expecting the BOJ head honcho to say anything new. In his previous speeches Kuroda said that the economy is expanding moderately but warned that against increasing downside risks that are prompting he and his team to discuss easing options that includes negative interest rates.
Meanwhile, BOJ’s monetary policy meeting minutes is also up tomorrow at 11:50 pm GMT. Watch the release closely to see if there are divisions between BOJ members that might prevent the central bank from making unanimous policy changes in the foreseeable future.
A lack of economic data in Japan means that yen traders will likely focus on other market events for directional cues.
U.S.-China trade negotiations could take center stage ahead of the high-level talks scheduled in China in early October.
Low-yielding assets like the yen caught a few pips from news that Trump is not open to making partial deals. Of course, it also didn’t help that China canceled scheduled goodwill visits to U.S. farms in Montana and Nebraska at the heels of Trump’s announcement.
Conflicts in the Middle East could also weigh on risk appetite. Word around is that Saudi Arabia will attempt to drum up support against Iran in this week’s U.N. General Assembly.
If Saudi gets enough friends on board, then the uncertainty in the region and in the future of global oil supply could push safe havens like the yen higher.