Early global risk aversion sentiment gave the Japanese yen an early lead on the other major currencies.
And it was able to keep the lead despite bad economic data from Japan and risk sentiment shifting back towards positive at the end of the week.
Japanese Headlines and Economic data
Global risk aversion sentiment dominates the markets, sparked by the historic crash in oil, to give the Japanese yen a positive start to the week as traders fled to safe haven assets.
Oil prices rebound fiercely on the session, lifting global risk sentiment as well with it. This is likely the influence that had the yen pulling back from Tuesday highs and fading a bit more for the rest of the week.
Thursday:Japan’s PMI report: GDP set to decline at an annual rate “in excess of 10% in Q2 2020”
Bank of Japan mulling unlimited bond buying at next meeting -Nikkei – This article was the catalyst for the yen’s whipsaw action during the U.S. trading session, first lower in reaction to unlimited quantitative easing before bouncing back.