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It was a choppy ride early week, but the Japanese yen ends the week as a net winner as Coronavirus fears once again bring traders to the safe have asset. This is despite net negative economic updates from Japan and a potential stimulus increase talk from the Bank of Japan.
Japanese Headlines and Economic data
Monday:
- BOJ’s Kuroda Says Will Take Steps to Stabilize Markets – this actually lead to broad risk-on sentiment and yen weakness during the Asia trading session.
- BOJ buys ETFs on Monday, breaks away from usual pattern
- Japan’s factory activity shrinks at fastest pace since 2016 on coronavirus hit: PMI
Tuesday:
- Japan consumer confidence falls in February
- The Japanese yen catches a bid on Tuesday after the G-7 fails to deliver policy action to combat coronavirus, adding to an already nervous market as the virus spreads further.
Wednesday:
- Japan services sector activity shrinks on coronavirus hit: PMI
- Yen bears take mild control, likely on a small turn in global risk sentiment towards positive after Biden scores big wins on Super Tuesday, lowering the odds of Bernie Sanders taking the White House, who traders fear will hurt capitalism with high taxes and socialist policies.
Thursday:
- BOJ may take steps to ease financial strain of virus-hit firms: sources
- Yen bulls take back control big time during the Thursday trading session as Coronavirus fears spike higher, especially after California declared state of emergency over coronavirus.
Friday:
- Japan’s real wages post first rise in four months in January
- Japan household spending falls 3.9% on year in January
- Japan Leading Index Flashes Worst Signal Since Financial Crisis
- More Coronavirus fears helped keep the yen bid after a round of net negative Japanese economic updates after the markets were hit with news of more than 100,000 infections worldwide.