USD/JPY: The yen seizes the global pandemic

Panic continues to fuel demand for safety as the yen appreciates. Government’s and central banks’ measures are seen as too little too late, according to Valeria Bednarik from FXStreet.

Key quotes

“US President Trump decided to suspend all travels from Europe for the next 30 days, as many other countries take measures similar to the Italian lockdown announced earlier this week. Things escalate exponentially, triggering an endless run for safety.”

“BOJ Governor Kuroda met with Prime Minister Abe and said the central bank is ready to take the necessary steps to support the economy, through asset buying and by providing ample liquidity.”

“Japan’s February Producer Price Index contracted to 0.8% YoY in February from 1.5% in January.”

“The US will release today the February Producer Price Index and its usual weekly unemployment figures. Data will only be relevant as it reflects the ongoing fears of a recession.”