Yen Crosses Rebound Strongly Thanks to Dow Rally

The strong rebound in the Dow today has led to a strong rebound in the Yen crosses. It appears that the movement in the US stock market is the only driver of trading for the Japanese currency these days.

There was no data released last night, although China did report a larger than expected trade surplus (our China Weekly has more details) . Meanwhile the Japanese data calendar next week contains a number of important releases including CGPI, current account, industrial production, GDP, tertiary activity index and the Bank of Japan rate decision. The central bank is not expected to change interest rates, but the current account, GDP and tertiary activity index could benefit from the recent yen weakness.