Japan is considering a new round of stimulus scheme worth of 100 trillion yen(US$929.45 billion), which includes financial aid programs for businesses under the shock of coronavirus pandemic.To get more news about WikiFX, you can visit wikifx news official website.
　　The scheme will be funded by the second extra budget of the fiscal year starting this April.
　　According to Nikkei News, this will be the second massive stimulus kicked off by the Japanese government after the record-breaking US$1.1 trillion spending plan launched last month, which focused on cash assistance for households and loans to small businesses hit by the pandemic.

　　We estimate Japanese governments economic stimulus will drive down the price of the yen, which has also been reflected in the latest change of forex market positions. As of May 19th, speculative net longs in JPY decreased by 467 to 27,470 contracts, with speculative longs dropping 4,269 to 52,038 contracts and speculative shorts down by 3,802 to 24,568 contracts.

Overnight USD/CAD rate dropped 228 pips to 1.3773, a new low since March 16th . This has been the largest intraday decline since March.
　　Bank of Canada‘s outgoing Governor Stephen Poloz maintains a dovish forward guidance before leaving the post, saying that the central bank is "doing the best to ensure a solid foundation for economic recovery”. Poloz is leaving the post in June, and he had previously warned that massive monetary stimulus will be needed for Canada’s economy.
　　As the Bank of Canada remains open to introducing more unconventional measures, the Canadian dollar may face even more unfavorable risks.
　　Canada will release on Friday the GDP for Q1, 2020, which is expected to see the greatest decline since the data was first recorded and published in 1961.

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