Embattled PM Suga Presses Pause On "Go To" Campaign

USD/JPY ground lower in Monday's European hours, before wiping out losses in a single upswing just ahead of the WMR fix. BBG cited a build-up in volume into option expiries, possibly linked to mid-month adjustments. On the news front, the move roughly coincided with NYC Mayor de Blasio's remark that the City should prepare for a second full shutdown & the announcement that London will enter tier 3 (highest) restrictions on Wednesday.

• Japanese PM Suga decided to stop the nationwide "Go To" travel campaign for two weeks in an attempt to reign in the spread of Covid-19 infections. Earlier press reports pointed to the potential for local suspensions, but a complete halt to the programme came as a surprise.
• 79% of respondents in the NHK survey published this morning said that the gov't should temporarily pause the "Go To" scheme, while 57% said that the gov't should declare another state of emergency. The poll indicated continued decline in the approval of PM Suga's Cabinet, with rating sliding 14 pp to 42%.
• Elsewhere, the Nikkei reported that the BoJ is planning to extend its corporate financing programme by 6 months. Policymakers will make the decision at this week's policy meeting.
• USD/JPY last seen at Y104.01, a touch lower on the day. A break under Dec 14 low of Y103.51 would turn bearish focus to Nov 6/Mar 12 lows of Y103.18/09. On the flip side, a recoil above Nov 4 high of Y103.76 would clear the way to the 76.4% retracement of the Nov 11 - 18 sell-off at Y105.20.
• Focus turns to Japanese trade balance & flash Jibun Bank PMIs (Wednesday) as well as CPI & BoJ MonPol decision (Friday).