The trade war between the US and China is heating up with the People’s Daily, the official newspaper of China, stating “We advise the U.S. side not to underestimate the Chinese side’s ability to safeguard its development rights and interests. Don’t say we didn’t warn you! United States, don’t underestimate China’s ability to strike back.” At the same time, trade talks between the US and EU collapsed which added another layer of issues for the slowing global economy and distress for the US economy specifically.

Japan is traditionally know as a risk averse country which is why the Japanese Yen has always been the go-to safe-haven currency for forex traders around the world. When geopolitical tensions rise or economic uncertainty increases, the Japanese Yen usually benefits as forex traders rotate capital out of more volatile currencies and park them in the Japanese Yen until the situation calms.

Maybe you have come across the term ‘Tankan Survey’? Those who have not should look it up as it is a very important economic report released by Japan. The Tankan Survey is released by the Bank of Japan four times per year; in April, in June, in September and in December.

The Government of Japan intends to explore measures that will help to minimize the negative effect of a significant weakening of the yen against foreign currencies. This was announced yesterday at a press conference in Tokyo by Japanese Finance Minister Taro Aso. The weakening of the yen is a consequence of the central bank's actions to mitigate the monetary policy. Such fluctuations in exchange rates favorable to export-oriented companies, but Japan has to consider a number of measures in connection with the growth of import prices.