Tokyo will host the 2020 Olympic Games.
On Friday, market chatter had attributed the decline in the Nikkei to sellers of real-estate and construction-related stocks to trim risk ahead of the weekend announcement. This helped drag down USD/JPY during Tokyo hours … which all sort of faded into insignificance once the NFP figures were released in the US and USD/JPY took a thrashing. All because a bunch of people in the US are abstaining from … errr … sexual activity.
OK, back on topic.
If the Nikkei was sold off ahead of the Olympic city announcement then we should expect there to be at least some sort short-term buying back on Monday, on optimism at the very least. Expect a bit of a gap up on USD/JPY in the New Zealand morning, but expect this announcement effect to fade, though. (See what I did there? I’ve highlighted it, just in case you didn’t).
International Olympic Committee president Jacques Rogge announces Tokyo’s successful 2020 Olympics bid – photo source Getty Images
