Another strong week for the Japanese yen thanks to global trade fears and counter currency weakness.
Japanese Headlines and Economic data
Monday:
- China to impose tariffs on U.S. goods despite Trump warning – rising tensions between the U.S. and China is likely the catalyst for the early week risk aversion sentiment and move into safe havens like the Japanese yen.
- Japanese leading and coincident indicators points to recession amid fresh Abenomics risks
Tuesday:
- Japan’s current account surplus shrinks first time in five years
- Will consider further easing if prices lose momentum – BOJ Kuroda
- Japan Finance Minister Aso: Sino-U.S. trade war won’t trigger economic crisis
- Japan eyes new stimulus as economy logs first slump in 6 years
Wednesday:
- Japan PPI y/y 1.2% vs. 1.3% previous
- Italy Rocks European Bond Markets Over Its Deficit Once Again – this story is arguably the catalyst for the broad risk-off behavior during the morning London trading session, including a broad rally in yen pairs.
- Trump expected to delay auto tariffs decision by up to six months: officials – This story shifted broad risk sentiment during the U.S. trading session as the decision to delay tariffs reduces geopolitical uncertainty and fears of further potential damage to global trade.
Thursday:
- Japan weighing downgrade of economic view, raises doubt on higher sales tax – possibly the catalyst for some yen weakness on the session.
Friday:
- Japan Indices of Tertiary Industry Activity falls -0.4% from the previous month to 106.2
- US reaches deal to lift steel and aluminum tariffs on Canada and Mexico – This arguably sparked risk-on sentiment (broad yen weakness) during the U.S. session, again another event that reduces geopolitical uncertainty and the potential for damage to the global trade economy.
