NHK: Japan to extend coronavirus emergency as early as Monday – Reuters

Anil Panchal FXStreet

Ahead of the Tokyo open on Friday, Japan’s public broadcaster NHK conveyed the news that Japan's PM Shinzo Abe will extend its state of emergency for containing the novel coronavirus as early as Monday, per Reuters. The news report cited by Reuters also mentioned that Prime Minister Shinzo Abe said it would be difficult to return to everyday life.

Key quotes

The Japanese government has called for vigilance during the long Golden Week holiday - normally a peak travel period - that runs through May 6, calling on people to stay home and reduce contact with others.

The government will formally decide to extend the emergency as soon as Monday after convening a meeting of experts on the virus, NHK said, without citing sources. The emergency is currently set to expire on May 6.

The government is planning to extend the emergency for about a month, sources have told Reuters.

Abe told reporters on Thursday night that Japan needed to prepare for a “drawn-out battle.” He initially declared the emergency on April 7 for Tokyo and other major population areas after a jump in infections, and later extended it nationwide.

Japan has had more than 14,000 confirmed cases of the coronavirus and 436 deaths, according to an NHK tally. Of the confirmed cases, more than 4,000 were in Tokyo, with 46 new ones on Thursday.

FX implications

Given the news adding downside pressure on the Japanese yen (JPY), also weighing the market’s risk-tone, USD/JPY holds onto recovery gains above 107.00 by the press time.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.