Japan has lots of banking holidays this week. Will that mean dead price action for the yen?
Check out the potential catalysts that can move the safe haven around in the next couple of days:
Consumer-related reports (May 7, 11:30 pm GMT)
- Average cash earnings last printed a 1.0% gain in February
- Household spending can drop by 4.0% after an 0.8% gain in February
Market risk appetite
- Fears over a post-pandemic U.S.-China trade war can support demand for the low-yielding yen
- Closely watched data releases such as China’s trade data, RBA and BOE’s policy decisions, and U.S. and Canada’s labor market numbers can also affect appetite for high-yielding bets
- Coronavirus cases, policy responses, and drug and vaccine prospects will continue to impact risk-taking
- Williams %R believes JPY is “overbought” against CAD and USD
- The yen was most volatile against NZD, AUD, GBP, and CAD in the last seven days
- JPY is still bullish in the short AND long-term against most of its major counterparts
Missed last week’s price action? Read JPY’s price recap for April 27 – May 1!