JPY Weekly Review (Jan. 6 – 10)

The Japanese yen comes out at the biggest loser this week as the high tensions between the U.S. and Iran faded into the weekend.

Japan Headlines and Economic data

Monday:

• BOJ’s Kuroda says will guide policy carefully with eye on Iran tensions
• Japanese manufacturing sector ends 2019 stuck in a downturn

Tuesday:

• Japan Service sector output declines at strongest rate
  in over three years
• Japan finance minister sees economy in moderate recovery
• Japan Monetary base grows by 3.2% in Dec. 2019 vs. 3.3% in the previous month

Wednesday:

• Japan’s consumer confidence improves from 38.7 to 39.1 in December
• BOJ to nudge up growth forecast on boost from fiscal package: sources
• Big spike higher in the Japanese yen as safe havens rallied on news that Iran fired missiles at U.S. bases in Iraq. Sentiment quickly shifted not too long after the attack after Iran announces it was not seeking further escalation. Market fears continued to fade into the weekend as the risk of further escalation did continue to decline through the rest of the week.

Thursday:

• Japan households’ mood hits 5-year low as tax hike bites

Friday:

• Japan’s household spending dips by 2.0% as expected in November
• Japan key economic index falls to 6-yr low in Nov. on weak production