The Japanese yen nearly takes the top spot despite spending most of the week in the red. Improving Japanese economic data and a late week turn in global risk sentiment to negative helped the yen close the week in the green before the Friday close.
Japanese Headlines and Economic data
Monday:
Opening weakness in the Japanese yen was likely due to broad positive risk sentiment. This likely stemmed from a very bullish start to the week for the Chinese equity market.
Tuesday:
Japanese average cash earnings down 2.1% vs. projected 0.9% drop
Japanese household spending sank 16.2% vs. projected 11.8% decline
Japanese leading indicators up from 77.7% to 79.3%
Wednesday:
Coronavirus spurs Japan bank lending at record pace in June
Japan economy watchers’ sentiment logs record rise in June, jumping from 23.3 to 38.8 in June
Thursday:
Japanese core machinery orders rebound by 1.7% vs. expected 5.2% slide
BOJ Gov Kuroda: Economy to improve as pandemic impact subsides
Yen pushes higher against the majors during the U.S. session, likely on rising risk aversion sentiment amid refreshed concerns of how the coronavirus will impact the economy.
Friday:
Japan’s wholesale price fall eases in June, weak demand clouds outlook
Japan’s economy to shrink at fastest pace in decades this fiscal year due to pandemic: Reuters poll
Thursday’s negative risk sentiment carried into the Friday Asia session as there were no major catalysts or new headlines to shift biases. This environment plus news from Japan of reopening travel with other Asia region economies was likely the reason why we saw further gains in the yen against the majors through the Asia and London trading sessions.
Broad risk sentiment flipped back to positive to knock the yen lower on news during the U.S. session from Gilead that remdesivir coronavirus treatment reduces risk of death.
