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Japan May Exports +49.6% Y/Y; 3rd Monthly Rise


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DOLLAR-YEN: Tuesday saw USD/JPY stage a spectacular recovery, ignited by
promising remarks re: stimulus measures from U.S. Pres Trump/Tsy Sec Mnuchin.
The rally ran out of steam in EU hours & the rate eased off ahead of the WMR fix
as reports from U.S. press talked down the odds of an imminent stimulus package.
Subsequent rebound took USD/JPY to new daily highs, before a modest correction.
- The pullback from Tuesday's peak has been extended into today's Asia session.
The rate has softened alongside U.S. equity futs and now trades -61 pips at
Y105.03. Continued worry about Covid-19 evident, with mkts probably somewhat
disappointed w/fairly inconsequential briefing from Pres Trump re: stimulus.
- The round figure of Y105 briefly gave way, bears keep an eye on Tuesday's low
of Y102.02. A breach of Tuesday's peak at Y105.92 is needed to give bulls a
fresh impetus & bring the Mar 6 high of Y106.34 into play.
- Locally, Kyodo reported that the BoJ considers expanding its ETF purchasing
programme, a little after the Bank revealed Y101.4bn worth of ETF purchases on
Tues. Elsewhere, a Japanese off'l told WSJ that the Tokyo Olympics would be
delayed if they can't go ahead in 2020.
MNI London Bureau | +44 203-865-3806 |