The Japanese yen was a net winner for the week on not a lot of major geopolitical headlines or positive Japanese economic updates. It’s likely counter currency weakness played a big role in the yen’s relative strength as speculation grows that major central banks will be increasing stimulative policies to combat softening global economic data and global trade uncertainty remains.
Overlay of Inverted JPY Pairs: 1-Hour Forex Chart
Japanese Headlines and Economic data
Monday:
- Japan big manufacturers’ mood hits near 3-year low – BOJ tankan
- The Japanese Consumer Confidence Index (seasonally adjusted series) in June 2019 was 38.7, down 0.7 points from the previous month
Tuesday:
- We saw a broad rally in yen pairs on Monday and Tuesday, and with no major geopolitical catalysts or Japanese data, the rally was likely a global risk sentiment move to negative after a slew of PMI updates from around the world largely disappointed (Global Manufacturing PMI at lowest level since October 2012)
Wednesday:
- BOJ policymaker sees no need for immediate easing
- Some weakness in the Japanese yen on the session, arguably on the shift back to positive in risk sentiment as traders bet on global monetary policy easing among the major central banks
Friday:
- Japan’s household spending in May rises fastest in 4 years
- Deputy Governor Amamiya says Bank of Japan ready to act, all options on table
