A mixed week for the Japanese yen despite negative Japanese economic updates and dovish commentary from the Bank of Japan, suggesting it was all about counter currency influences for yen pairs.
Japanese Headlines and Economic data
Monday:
- IHS Markit Japan Business Outlook: Business confidence in Japan weakens to three-year low
- BOJ Would Back Government Stimulus in October, Ex-Official Says
Tuesday:
- After a small pop during the European session, possibly due to growing geopolitical fears of a no-deal Brexit, the Japanese yen moves back to the downside global risk sentiment bounces tensions between Iran and the U.S ease (State Secretary Pompeo says Iran is ready to negotiate about its missile program)
Thursday:
- Sliding Japan exports, manufacturing gloom heighten economic risks
- Japan manufacturers’ mood hits three-year low: Reuters Tankan
- BOJ’s Kuroda says will mull data until last minute in deciding July policy – this is possibly the catalysts for a somewhat broad move lower in the Japanese yen against the majors at the end of the Asia session and into the European trading session.
Friday:
- Japan’s core inflation hits two-year low, might push BOJ to ease again soon – this is likely the catalyst for the yen’s shift to the downside during the early Asia session, but it’s also possible it’s a global risk sentiment reaction to positive after comments from the Fed’s Williams cements rate-cut expectations
- Japan all industries activity rises 0.3% to 106.7
