The Japanese yen takes a bow to the rest of the majors once again as positive U.S.-China trade war developments continues to lift global risk sentiment.
Japanese Headlines and Economic data
Monday:
- Japanese lending increases 2.1% y/y in August vs. a 2.3% y/y in July
- Japan logs current account surplus of 2T yen in July
- Japan downgrades second-quarter GDP as trade war hits business investment
- Japan’s economy watchers are the gloomiest they’ve been in 5 years
Tuesday:
- M2 money supply in Japan increased by 2.4% y/y
- Global risk sentiments begins to shift towards positive for the week, starting with talk that China ready to sweeten deal by buying American goods, pushing traders away from safe haven assets like the Japanese yen
Wednesday:
- Japan’s Ministry of Finance Business Survey Index: All industries with over 1B yen capital +1.1 in September vs. -3.7 previous in June
- China waives tariffs on some US goods for first time since the trade war began
Thursday:
- The Japanese yen took a broad hit against the majors during the Asia session, likely on the gloomy update on Japanese Machinery Orders and the negative paces of producer prices growth (PPI -0.3% m/m in Aug. vs. 0.0% m/m in July)
- Japan Indices of Tertiary industry activity rose 0.1% (SA) m/m to 106.9
- Global risk sentiment continued its positive march during the U.S. trading session, likely on the combination of fresh stimulus moves from the European Central Bank (cuts its deposit rate, launches new bond-buying program) and more positive developments from the U.S.-China trade theme as Trump delays tariff hikes on Chinese goods ahead of talks & China exempts U.S. agricultural products from tariffs after reports of potential interim trade deal
Friday:
