A combo of dovish BOJ and risk-friendly trading environment dragged the yen lower last week. Will the tides change for the safe haven this week?
Here are potential catalysts you should watch out for:
- After the September sales tax increase, traders will look to consumer data for clues on inflation trends
- Annualized cash earnings (Nov. 7, 11:30 pm GMT) is expected to grow by 0.1% after slipping by 0.1% in August
- Household spending (Nov. 7, 11:30 pm GMT) could see a 7.7% jump after a 1.0% increase in August
Global risk sentiment factors
- Central bank events (RBA and BOE statements, ECB Governor Lagarde’s speech, FOMC members’ speeches)
- U.S.’ Wilbur Ross: “no natural reason” why U.S.-China deal couldn’t be signed this month
- Euro Zone PMI results to show further weaknesses?
- Will the U.S. dollar extend its losses this week?
- NZD/JPY is the most bullish and USD/JPY is the most bearish in the short term
- GBP/JPY is the most bullish and USD/JPY is the most bearish in the long-term
- Look for potential retracements on USD/JPY and GBP/JPY’s longer-term trends
- Watch NZD/JPY closely to see if its short-term bullish trend will lead to the pair graduating from “bearish but weakening” status to “bullish” territory on the longer time frames
Missed last week’s price action? Read JPY’s price recap for Oct. 28 – Nov. 1!