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The Japanese yen sees gains on negative vibes from the fast climbing coronavirus cases, the Saudi-Russia oil price war, and a global economy likely in recession prompted traders to run towards safe havens this week.
Japanese Headlines and Economic data
Monday:
- Abe pledges Japan’s “boldest-ever” economic stimulus to fight virus
- Japan to boost government bond issuance by $149 billion to fund stimulus
- Tokyo governor calls for fewer outings, says state of coronavirus emergency up to PM
Tuesday:
- Japanese preliminary industrial production up by 0.4% vs. 0.0% consensus
- Japanese retail sales rebound 1.7% after earlier 0.4% drop
- Japan’s Jobless Rate Steady at 2.4% in February
- Risk aversion sentiment rises during the U.S. session to help the yen rally higher against the majors, likely sparked by the rising uncertainty how bad the COVID-19 pandemic will be.
Wednesday:
- Japan’s business confidence hits seven-year low
- Japan’s Abe Will Likely Add to Record $555 Billion Stimulus
- au Jibun Bank Japan Manufacturing PMI: Manufacturing output falls at sharpest rate since aftermath of 2011 tsunami
- Risk sentiment spikes negative on the session to lift the Japanese yen, likely sparked by U.S. President Trump’s change of sentiment on the coronavirus, warning of ‘very painful two weeks’ ahead.
Thursday:
- Tokyo confirms 97 new coronavirus cases, daily record increase
- The Japanese yen pulls back during Asia, likely on positive risk sentiment after Trump talks up truce hopes for Saudi-Russia price war. We then see roller coaster moves in sentiment from the markets during the European and U.S. sessions on continued oil news (Oil Rebounds on China’s Crude Buying and Trump’s Diplomatic Push) and disbelief.
Friday:
- Japan to roll out huge stimulus package next week as pandemic pain deepens
- Japan PM Abe agreed to $2,800 cash payouts to households: ruling party official
- The Japanese yen was able to hold onto its gains for the week during the Friday session as risk sentiment leaned net negative, possibly on more doubts of the Saudi-Russia oil deal, the economic damage being done from the global social lockdown, and/or continued coronavirus fears as cases and deaths continue to rise at a frightening pace (Coronavirus cases top 1 million globally)