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A choppy and volatile week for the Japanese yen as we saw another round of negative risk sentiment (once again on coronvirus developments) versus actions by central governments and banks to combat the likely economic damage the world will soon see from the pandemic.
Japanese Headlines and Economic data
Monday:
- BOJ’s Kuroda signals readiness to act as market rout heightens chance of easing next week
- Japan to boost special financing for coronavirus firms to $16 billion
- Japan’s economy shrinks faster than first estimated on growing virus, recession risks
- Economy watcher sentiment hits 9-year low amid coronavirus outbreak
- Massive risk-off sentiment right the start of the week after Saudi Arabia Stuns the world with massive oil discounts in all-out price war was the likely catalyst for traders to move quickly into the yen right at the open of trade.
Tuesday:
- Japan M2 money supply rises by +3.0% y/y in February
- Japan’s Abe pressures BOJ to ease ahead of next week’s rate review
- Japan to unveil coronavirus package, not yet eyeing extra budget
- The Japanese yen slowly moved lower during the Tuesday session as traders began to speculate on potential stimulus moves coming from central banks and governments to combat the coming economic damage from the fast spreading coronavirus.
Wednesday:
- BOJ to sustain current daily ETF buying pace through March: sources
- BOJ likely to ease policy next week to bolster sentiment: sources
- Global risk-off sentiment comes back quickly after the markets didn’t like the coronavirus response package presented by U.S. President Donald Trump, and likely on the news of the World Health Organization declaring the coronavirus outbreak a global pandemic
Thursday:
- Kuroda says BOJ ready to act to support economy, after meeting PM Abe
- Japan large manufacturers’ mood sours to 9-year low from Coronavirus jolt
- The Japanese yen spiked higher early in the Asian session after news of U.S. travel restrictions from Europe, and on the likelihood traders were disappointed that the ECB didn’t do more to stimulate the economy (i.e., no expected rate cut) in their latest monetary policy actions.
Friday:
- Japanese gov’t promises ‘bold’ efforts to beat coronavirus fallout
- BOJ announces unscheduled bond-buying operation
- Japan Tertiary industry activity increases by 0.8% in January
- Broad move lower in the Japanese yen against the majors during the Friday session as traders bet on more fiscal stimulus efforts from world governments would be on the way to offset the economic damage from the coronavirus.