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Japanese Yen Hits 7-Month Lows
The Japanese Yen fell 0.11 points or 0.1% to fresh 7-month lows of 106.87 against the US Dollar on Tuesday, on bets of a faster economic recovery in the United States and tracking US 10-year bond yields as they remained elevated at 1.415%. Meantime, local data revealed that capital spending in fell by 4.8% yoy in Q4 as firms slashed spending on plant and equipment for the third straight quarter, while the jobless rate stood at 2.9% in January, as strong government spending underpinned the economy amid the recent coronavirus state of emergency imposed.
Published on 2021-03-02

Japanese Yen Trades at 7-Month Low
The Japanese Yen fell 0.064 points or 0.06% to 106.567 against the US Dollar on Monday as resurgent risk appetite pushed the safe-haven Japanese yen to 7-month lows. However, bond yields remain elevated with local 10-year rates near 5-year highs of 0.159% while US 10-year yields eased from yearly highs to 1.408%. Meantime, Japan's COVID-19 state of emergency was lifted in six prefectures outside the Tokyo region on Monday amid signs of an improvement in the infection situation, while concern about a possible resurgence of coronavirus cases persists. In local data, the au Jibun Bank Japan Manufacturing PMI was revised higher to 51.4 in February, the first month of expansion in factory activity since April 2019 and the fastest since December 2018. On the price front, input cost inflation accelerated to the quickest rate in two years, while selling prices went up for the third month in a row.
Published on 2021-03-01

Japanese Yen Trades at 5-Month Lows
The Japanese Yen added 0.058 points or 0.06% to 106.074 against the US Dollar on Friday, trading at 5-month lows as local Government bonds and particularly US Treasuries have become the focal point of markets globally, rising aggressively to price in earlier monetary tightening than signaled by the Federal Reserve and its peers. Local 10-year rates surged to 5-year highs of 0.167% while the US 10-year rate eased from yearly highs of 1.48%. Further denting sentiment, Japan reported 1,076 new COVID-19 infections on Thursday, bouncing back above 1,000 for the first time in two days. On the data front, retail sales in Japan fell 2.4% yoy in January after a revised 0.2% drop in December, while housing starts dropped by 3.1% in the month, the least in 19 months.
Published on 2021-02-26

Japanese Yen Trading Near 5-Month Lows
The Japanese Yen fell 0.123 points or 0.12% to 105.974 against the US Dollar on Thursday trading near 5-month lows amid a global rise in bond yields. US 10-year rate extended yearly highs to 1.401%, while local 10-year yields surged 15.55% to 0.142%. Recent worries about higher interest rates and inflation eased somewhat after Powell reiterated interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until “substantial further progress” has been made toward its goals of maximum employment and price stability. Meantime, BoJ Governor Haruhiko Kuroda said the central bank will seek ways to make its ETF buying programme more effective and sustainable in a scheduled review of its policy tools in March. On the data front, Japan's leading economic index for December was revised higher to 95.3 from a flash reading of 94.9.
Published on 2021-02-25

Japanese Yen Continues Retreat
The Japanese Yen moved 0.267 points or 0.26% lower to 105.512 against the US Dollar on Wednesday amid worries about rising bond yields both locally and in the US. Japanese 10-year bonds remain elevated at 27-month highs of 0.118% while US Treasury bonds retreated slightly but remained at yearly highs of 1.34%. US Federal Reserve Chairman Jerome Powell reiterated an accommodative policy stance in a speech before Congress, pledging to hold rates at the current level near zero until the economy reaches maximum employment and inflation has risen to 2%. Powell also noted that prices could rise later this year if Americans engage in a burst of spending as the coronavirus comes under control while stressing that the economic recovery remains uneven and far from complete, and the path ahead is highly uncertain. Regarding the pandemic, local media said that Japan is considering lifting the state of emergency declared in six prefectures ahead of its scheduled end date on March 7th.
Published on 2021-02-24

Japanese Yen Remains Weak at 3-Month Lows
The Japanese Yen fell 0.079 points or 0.08% to 105.145 against the US Dollar on Tuesday, trading near 3-month lows as market participants exercise caution amid rising bond yields both locally and in the US as US 10-year yields remained elevated at yearly highs of 1.362%, while Japanese 10-year yields hit over 2-year highs of 0.115% amid lingering speculation the BOJ could widen the 40-basis-point band under which it allows 10-year yields to move around its 0% target. Policy makers across the globe are also expressing concerns as European Central Bank President Christine Lagarde noted overnight that her institution is “closely monitoring” the market for government bonds. Meantime, President Joe Biden’s $1.9 trillion stimulus package advanced out of the House Budget Committee on Monday and is virtually set for a full House vote later this week. Markets in Japan remain closed on Tuesday for a public holiday.
Published on 2021-02-23

Japanese Yen Trades at 4-Month Lows
The Japanese Yen lost 0.344 points or 0.33% to 105.729 against the US Dollar on Monday, trading at 4-month lows. The Yen remains particularly sensitive to the US bond market due to local yields remaining anchored by the Bank of Japan, while US treasury 10-year rate rose above yearly highs to 1.38%. Such concerns make Federal Reserve Chair Jerome Powell’s Congressional testimony on Tuesday all the more important. Last week, Japanese consumer prices declined 0.6% year-on-year as the pandemic continued to drag consumption, while factory activity grew for the first time in 22 months and private sector shrank at a softer pace.
Published on 2021-02-22

Japanese Yen Eases From 4-Month Lows
The Japanese Yen added 0.059 points or 0.06% to 105.619 against the US Dollar on Friday after an unexpected increase in the weekly unemployment claims report from the US dented sentiment, and raised concerns that the economic recovery from the coronavirus was struggling to regain momentum. Meantime, local 10-year bond yields lifted to a 26-month high of 0.106%. On the pandemic front, Japan confirmed a new COVID-19 strain, while an infection cluster emerged at a Tokyo immigration facility as the country began its vaccination drive yesterday. In local data, consumer prices declined 0.6% year-on-year as the pandemic continued to drag consumption, while factory activity grew for the first time in 22 months and private sector shrank at a softer pace.
Published on 2021-02-19

Japanese Yen Trades at 4-Month Lows
The Japanese Yen was little changed at 105.885 against the US Dollar on Thursday, holding at 4-month lows as expectations for US inflation rates reached their highest levels in a decade yesterday, driven by prospects of a large fiscal package, progress on vaccine rollouts and pent-up consumer demand. On the coronavirus front, Japan expanded its COVID-19 vaccine rollout beyond the Tokyo metropolitan area on Thursday, with health workers set to be inoculated at 100 hospitals across the country by next week. The Bank of Japan's governor also noted that the bank would conduct a review of its policy tools in March to ensure it can maintain ultra-loose monetary settings for a long period. Meantime, data from the US showed that retail sales rose in January by the most in seven months, beating all forecasts, while minutes from the Fed’s January policy meeting revealed that officials didn’t see the conditions for reducing their massive asset-purchase program being met for “some time.”
Published on 2021-02-18

Japanese Yen Hits 5-Month Lows
The Japanese Yen traded flat at 5-month lows of 106.051 against the US Dollar on Wednesday as US bond yields jumped on the prospects of further economic recovery and a possible acceleration in inflation. The 10-year rate rose above 1.3% for the first time in a year while the 30-year rate also hit its highest since February 2020. Meantime, Japan begins its vaccination drive today, administering the Pfizer-BionTech vaccine to Tokyo hospital workers. On the data front, Japan’s exports rose 6.4% in January as compared with a year earlier, while imports dropped 9.5% over the same period. Core machinery orders excluding ships and electric power companies rose 5.2% month-over-month in December 2020.
Published on 2021-02-17

Japanese Yen Hits 18-week Low
USDJPY increased to a 18-week high of 105.76
Published on 2021-02-16

Japanese Yen Trades Near 3-Month Lows
The Japanese Yen lost 0.179 points or 0.17% to 105.534 against the US Dollar on Tuesday, trading closer to three month lows as strong risk-appetite throughout Asian trade dented the safe-haven Yen as Bank of Japan Governor Haruhiko Kuroda defended the BoJ’s ultra-loose monetary policy, stressing that it was premature to debate an exit from the central bank’s huge purchases and holdings of exchange-traded funds while the coronavirus pandemic continues to ravage the economy. Japan reported 965 new virus cases on Monday, coming in below the 1,000 mark for the first time in three months. Meantime, preliminary data showed that the Japanese economy grew by 3.0% qoq in Q4, beating market expectations of a 2.3% expansion, amid a rebound in business spending and a further rise in private consumption. Finally, industrial output in Japan fell 1% on-month in December, the second month of decline.
Published on 2021-02-16

Japanese Yen Trades Lower
The Japanese Yen fell 0.269 points or 0.26% to 105.187 against the US Dollar on Monday after benchmark U.S. Treasury yields rose to their highest levels since March on Friday, while US financial markets remain closed on Monday for Presidents’ Day. Also giving the US Dollar a boost were inflation expectations, which edged up to a six-year high. Meantime, preliminary data showed that the Japanese economy grew by 3.0% qoq in Q4, beating market expectations of a 2.3% expansion, amid a rebound in business spending and a further rise in private consumption. Finally, industrial output in Japan fell 1% on-month in December, the second month of decline.
Published on 2021-02-15

Japanese Yen Slips For 3rd Session
The Japanese Yen fell 0.097 points or 0.09% to 104.839 against the US Dollar on Friday as the Japanese government decided Friday against lifting the COVID-19 state of emergency covering Tokyo and other regions this week ahead of the March 7 end date, as hospitals remain under pressure despite a decline in infections. Local media also reported that the first batch of Pfizer’s COVID-19 vaccine will arrive in Japan today, with official approval for the shots expected within days. Prime Minister Yoshihide Suga has said vaccinations would begin from the middle of next week, starting with health workers, and the government hopes to have secured enough supplies for the whole populace by mid-year. In the US, The number of Americans filing for unemployment benefits fell to 793 thousand in the week ended February 6th, the lowest level in four weeks, but remaining elevated due to a slowdown in the labor market recovery.
Published on 2021-02-12

Japanese Yen Retraces 3-Month Lows
The Japanese Yen added 0.413 points or 0.4% to 104.8 against the US Dollar on Tuesday as investors welcomed reports that Japan will disburse JPY 1.14 trillion from reserve funds for fiscal 2020, mainly to raise subsidies for pandemic-hit sectors following a one-month extension of the latest emergency declaration. Meantime, Tokyo confirmed 276 new coronavirus cases Monday, marking the lowest daily infections in more than two months under an extended state of emergency. Meantime, the US dollar index slumped to its lowest in a week after disappointing US jobs data on Friday flattened a two-week run that had lifted it to a more than two-month high of 91.6. Investors are also expecting that further US stimulus is highly likely to pass soon, exacerbating the widening in the US current account deficit and weighing on the USD.
Published on 2021-02-09

Japanese Yen Trades at 3-Month Lows
The Japanese Yen fell 0.193 points or 0.18% to trade at 3-month lows of 105.508 against the US Dollar on Monday. The safe-haven Yen dipped as US Democrats cleared the path for the approval of President Joe Biden’s US$1.9 trillion COVID-19 relief package, with Speaker Nancy Pelosi predicting the final relief legislation passing Congress by March 15. On the data front, Japan's current account surplus widened to JPY 1,166 billion in December 2020 from JPY 545 billion a year earlier, while Japanese bank deposits surged at a record annual pace in January, a sign that companies and households are hoarding cash to guard against the prolonged damage from the coronavirus pandemic.
Published on 2021-02-08

Japanese Yen Trades Flat at 3-Month Lows
The Japanese Yen was little changed at 105.501 against the US Dollar on Friday, trading at 3-month lows amid better than expected US data this week, while sentiment was further boosted as President Joe Biden attempts to fast-track a $1.9 trillion stimulus package without Republican support. Meantime, Bank of Japan Governor Haruhiko Kuroda said today the central bank's purchase of ETF helped ease market strains when the pandemic threatened financial markets last year. On the data front, household spending in Japan fell less than expected in December as domestic economic recovery gathered pace
Published on 2021-02-05

Japanese Yen Extends 3-Month Lows
The Japanese Yen lost 0.217 points or 0.21% to fresh 3-month lows of 105.245 against the US Dollar on Thursday. Sentiment was pessimistic amid 2,600 novel coronavirus cases newly reported nationwide as Japan's parliament on Wednesday enacted laws that will introduce fines for people and businesses that do not comply with restrictions imposed to prevent the spread of the virus. Meantime, the Democratic-controlled US Congress pushed ahead on Wednesday with a maneuver to pass President Joe Biden's $1.9 trillion COVID-19 relief package without Republican support, while signaling a willingness to scale back direct payments for Americans.
Published on 2021-02-04

Japanese Yen Hits Fresh 11-Week Low
The Japanese Yen lost 0.114 points or 0.11% to 105.068 against the US Dollar on Wednesday. Investors retreated from the Yen as Japan reported 2,324 new infections and a record 119 new deaths on Tuesday, while the government announced a one-month extension to its state of emergency for 10 areas. In the US, Democrats in Congress took the first steps toward advancing Biden's proposed $1.9 trillion stimulus without Republican support, while Yellen is calling a meeting of top financial regulators this week, possibly as early as Thursday regarding recent market volatility. On the data front, the au Jibun Bank Japan Services PMI came in at 46.1 in January, the twelfth straight month of contraction in the sector and the steepest pace in five months.
Published on 2021-02-03

Japanese Yen Trades at 3-Month Lows
The Japanese Yen lost 0.089 points or 0.08% to trade at 3-month lows of 105.011 against the US Dollar on Tuesday after reports that the Japanese government is set to extend the state of emergency for Tokyo and other regions struggling to contain the novel coronavirus by one month to March 7 as hospitals remain under pressure from a surge in patients in serious condition. Meantime, Japanese Finance Minister Taro Aso and US Treasury Secretary Janet Yellen agreed in phone talks that the highest priority was to get their economies out of the current crisis through bold fiscal measures. Globally, US President Joe Biden told Republican senators Monday that he’s unwilling to settle on an insufficient coronavirus aid plan and mentioned that he won’t delay aid in hopes of winning GOP support.
Published on 2021-02-02