Japanese Headlines and Economic data
Broad move higher for the Japanese yen despite the disappointing economic updates mentioned above. There weren’t major global headlines to start the week, but traders may have been leaning net negative on broad risk sentiment on rising virus cases and U.S-China tensions.
The yen rallied against the majors during the Wednesday U.S. session (with exception to the U.S. dollar), correlating with the release of the FOMC meeting minutes. They showed an unexpected dovish tone on expectations that coronavirus will ‘weigh heavily’ on the economy, sparking the broad risk aversion sentiment that followed.
The broad move higher in the Japanese yen against the majors during the morning London session, likely sparked by the broad risk aversion sentiment set off by the disappointing European manufacturing and service PMI updates, as well as rising uncertainty with Brexit negotiations (EU, Britain trade blame after scant progress towards post-Brexit deal)