Japanese Headlines and Economic data
No major news from Japan to spark the broad weakness in JPY on the session, so it’s likely the rebound in risk assets after last week’s sell off was the main driver for the yen’s underperformance.
The messy U.S. Presidential debate sparked a broad move in risk sentiment towards risk aversion and prompting some lift to the Japanese yen. Sentiment later reversed towards positive to likely put pressure on the yen on rising hopes of new U.S. stimulus package coming soon.
We saw a spike higher in the Japanese yen during the Asia session as traders ran to safety after U.S. President Trump’s announcement on Twitter that he and the First Lady contracted COVID-19 increased the uncertainty of the upcoming U.S. presidential election.