Japanese Headlines and Economic data
No economic updates or major headlines from Japan, so it’s likely the slight bearish lean on the yen to start the week may have been influenced by news of Japan’s Shinzo Abe returning to the hospital on the day he became country’s longest-serving Prime Minister.
Broad risk sentiment was also leaning positive for the session (likely putting some pressure on the yen) on news of the U.S. Food and Drug Administration issuing an emergency use authorization of convalescent plasma for hospitalized Covid-19 patients.
Japanese yen weakness accelerated during the Thursday U.S. trading session as traders reacted in favor of risk assets to the announced new approach to inflation by Fed Chair Jerome Powell during the Jackson Hole Economic Symposium.
The move of the week for the Japanese yen came after Japan’s Prime Minister Shinzo Abe resigned for health reasons. This surprised the markets and sent Japanese equities lower / the Japanese higher.
The rally stabilized during the U.S. trading session as JPY traders returned focus to broad risk sentiment, which was leaning positive as U.S. equities rallied into the weekend (Dow closes more than 150 points higher to erase its 2020 losses).