JPY Outlook Bullish on Covid-19 Rise, USA Earnings Sessions


  • Japanese Yen can also surge if the upcoming OPEC meeting shows any signs of inside political fragmentation.
  • The Gains might be amplified is the USA earnings from the larger market-cap companies underwhelms
  • The JPY might get the tailwind from the risk aversion over some concerns of the increasing coronavirus cases.

Covid-19 Cases

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The JPY might surge incase the increasing number of COVID-19 cases, especially in the United States, which is by far the biggest economy around the world. As of today, the US is spurring more demand for anti-risk assets. Extra efforts to somehow mitigate the spread of COVID-19 mean the extension or reimplementation of the lockdown measures that are adversely affecting the economy. Coronavirus has sent almost all global economic activities to the ground.

Essentially, the United States comprises less than 20% of the total of confirmed cases around the world. Hotbeds such as Florida and Texas are currently reporting very high numbers. Medical metrics in these areas have extensively unnerved the already unsettled traders that are already considering the current geopolitical risks in the United States. All this is happening as the US prepares for the Presidential election and ever-rising tensions with China. This has also The Improved Japan’s Merchandise Trade Balance Pushes Down The British Pound Against The Japanese Yen.

Corporate Earnings

The JPY might extend the gains in case earnings from corporations such as Blackrock, Wells Fargo, Goldman Sachs, and other high-end corporations miss their earnings predictions. Since the trading of the global securities back in March, the Wall Street stock market has bounced with extra energy, resulting in doubtful asset prices, which might not be justified by these poor earnings.

Tech-focused stocks to be specific be in the most robust group. Since March Alphabet Inc., amazon and apple having risen over 40.0, 93.0, and 60.0 percent respectively. So, the disproportionate weight in the big US securities indices masks the outlook of the small-cap corporations that seem to struggle in a bad economic downturn from the time we had the Great Depression.

As a result, the wide array of underwhelming earnings publications mightier shatters the aspects of economic stability and result in a pullback in the big equity indices. If this is the case, the anti-risk JPY might rise against most of its G10 counterparts, particularly those that are chained in the commodity-oriented economies. This includes Canadian, New Zealand, and Australian dollars. Not to forget the Norwegian krone and the Swedish krona. This has further been described by Canadian Dollar Dispairs Against the Japanese Yen After The Release of Unfavourable Economic Event.

OPEC Meeting

It is yet to be seen whether the results of the upcoming OPEC meeting will nudge the Japanese yen higher. The joint monitoring committee will soon be holding a meeting to evaluate the member’s level of compliance with the set production amounts. The previous OPEC meeting held back in March, where Saudi Arabia and Russia did not reach an agreement in regards to production, saw the prices of crude oil decline. Unfortunately, this matter also affected other commodities.


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