Geopolitical and global growth concerns kept yen bulls busy last week. Can this week’s Japanese reports inspire retracements?
Japan won’t be printing top-tier reports, but a few sets of lower-tier data could make for some interesting intraday plays:
The preliminary reading of machine tool orders showed a 12.6% dip in August and marked the first decline in two months. The annualized version didn’t look much better with its 37% drop from a year ago.
Can this week’s numbers show some improvement? September’s data will be printed on October 9 at 6:00 am GMT.
Meanwhile, core machinery orders is expected to stagnate in August after falling by 6.6% in July. Weaker numbers for private sector machinery purchases would suggest that Japan’s economy might have to rely more heavily on consumer purchases for growth. Watch out for upside or downside surprises on October 9 at 11:50 pm GMT!
With Japan’s sales tax hike (from 8% to 10%) kicking in in October, traders will be looking for clues on how much the extra tax can affect Japanese consumers’ spending ability.
Annualized readings of average cash earnings and household spending for the month of August will be printed today at 11:40 pm GMT.Cash income is expected to dip by another 0.2% after showing a 1.0% decline in July, while household spending could advance by 1.2% after a 0.8% increase in July.
Meanwhile, a survey on workers and their economic conditions is expected to print better prospects from August to September. The Economy Watchers Sentiment report is due on October 8 at 5:00 am GMT.
Market risk sentiment
Another week, another chance to trade the yen as a safe haven?
If you’ve read last week’s currency recap, then you’ll know that the yen got boost from both geopolitical and global growth concerns.
There aren’t a lot of top-tier reports scheduled from other major economies this week, but themes like a Brexit deadline, U.S.- EU trade conflict, and U.S.-China trade negotiations could affect appetite for risk (and safe havens) this week.
Keep close tabs on your yen charts so you don’t miss out on potential risk appetite trends that might unfold!
Missed last week’s price action? Read JPY’s price recap for Sept. 30 – Oct. 4!