Japanese Yen Littled Budged on Widely-Expected Trade Deficit
THE TAKEAWAY: Japanese trade deficit widens in November > Overall trend largely expected given recent statements > Yen reaction muted
Chart generated using Strategy Trader
The Ministry of Finance released figures showing that the Japanese trade deficit widened in November. According to the data, during the month, imports exceeded exports by 585.1 billion Yen, slightly below estimates of a 599.4 billion Yen shortfall. Nevertheless, the trade deficit was more than twice as wide as in October. Wednesday’s trade figures were largely in line with expectations of a slowdown in Japan’s export-driven economy, expectations fueled by a strong Yen and recent statements from the Bank of Japan. This, coupled with a market largely devoid of large directional moves and the absence of signals about intervention, led to a relatively muted reaction in the Yen, which briefly strengthened before returning to the 76.88-76.90 range versus the US Dollar.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.