Japan

Bloomberg reporting that Corona Virus Cases have doubled in Japan to 74,and likely to move higher.With Japan’s Aging population,third oldest in the world,are worries heightened as to the impact of the virus on the Country? Japan has a tough run of late a Typhoon late last year and a Tax hike and Now Corona.

JPY almost down 1% today as Virus worries and now Economic slowdown worries weigh . from ScotiaBank ” Japan’s cap-ex picture took a turn for the worse.Machine orders fell by 12.5% m/m and thus more than consensus (-8.9%) after a temporary 18% jump in November. Since 2000, there have been only three bigger monthly declines. In year-ago terms, orders fell 3.5% y/y. This suggests further downside through revision risk to Japan’s Q4 GDP contraction of 6.3% q/q at a seasonally adjusted and annualized rate following typhoon and sales tax effects” remember These metrics are pre -Virus impact!

So Yen Collapsing and In turn Pushing dollar index to 2.5 year highs,Recall yesterday euro dropped to Multi year lows so even if the U.S. economy was struggling a bit it would be hard pressed to see dollar down for long, as the other economies struggle.If Trend Lower in Jpy continues along with Euro Downtrend the Calls that dollar is too high it is hurting exports and thus Fed has to cut rates will not be far off , As Kudlow and maybe Trump Call for Powell to act. Stronger Dollar is Not Good for a Worldwide Economic recovery.

Daily JPY futures

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