020 7898 0500On Friday, in the wake of the Barcelona attacks, the Japanese yen strengthened once more against the US dollar, as it is traditionally seen as safe haven in times of uncertainty. This, coupled with the instability of Trump’s presidency saw the yen gain 0.5% against the dollar.
This week is a fairly busy one for the US with the manufacturing and services PMI data released on Tuesday, while US employment claims will be released on Wednesday. These claims will be watched closely for continued signs of non-farms payrolls from last month which came out better than expected. Finally, on Friday we have the US core durable goods release.
There are two key points for the US economy next week. First, recent data has been fairly mixed of late which has led to the market reducing expectations of a Federal Reserve interest rate hike later this year – will expectations increase or dampen over the course of this week? Second, how will the instability of Trump’s government and the tensions surrounding North Korea play out? Both could lead to more investment in the Japanese yen and further weakening of the dollar.
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