The Japanese yen was a net loser through most of the week, likely on a combo of net negative updates from Japan and broad risk sentiment leaning generally positive all week.
Japanese Headlines and Economic data
Monday:
Japan to gradually lift COVID travel alerts from October
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.
Tuesday:
Some in BOJ called for review of policy strategy – Sept meeting summary
Wednesday:
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.
Japan’s August industrial output up 1.7% for third straight monthly rise
Japan August retail sales fall 1.9% year/year (vs. -2.0% expected)
Thursday:
Tokyo Stock Exchange suspends day’s trade after worst-ever system glitch
Japan’s factories suffer record 17th month of declining activity
Japan business sentiment perks up as hit from pandemic begins to ease
Japan ruling party heavyweight says to consider ‘large-scale, bold’ spending package – Nikkei
Japanese Manufacturing PMI reaches seven-month high
Friday:
Japan jobless rate hits 3-year high despite chronic labor shortage
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.