THE TAKEWAY: Japanese retail trade industry contracts further > Global slowdown likely the key driver behind flagging sales > Yen little changed
The Japanese Yen was little changed versus the U.S. dollar as large-scale retail store sales decreased by -4.4 percent in July marking an accelerated decline from last month’s reading which printed at -2.6 percent. Moreover, retail trade on a yearly and monthly basis hint towards contraction registering at -0.8 percent and -1.5 percent respectively. Each data release fell short of an already gloomy expectation.
The drop-off in trade data suggests the global slowdown in Europe and China has likely taken its toll on Japan’s export driven economy.
Markets remain calm as traders may be looking for directional queue from Friday’s result at the Jackson Hole economic meeting. The Yen is regarded as a go-to currency when market volatility increases as traders seek safety in highly liquid investments.
USD/JPY, Daily Chart