News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • A forex trader is strategic, disciplined and always switched on to the markets. Learn how to build an FX mindset here: https://t.co/tB3aAE9BIq https://t.co/xXJAnSMoaF
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrLeetw https://t.co/1w7E3aiWV1
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmI7kAV https://t.co/JiZPRZzwgo
  • RT @IGSquawk: Crypto update: #Bitcoin 56398.30 -7.34% #Ether 2213.91 -7.42% #BitcoinCash 925.49 -12.24% #EOS 6.8039 -15.98% #Stellar 0.5276…
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkzWwW https://t.co/rJUm1W9wrc
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/oZPoyPH2iw
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yN1I9FrfIS
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/5l3O9aHQbL https://t.co/DFEfCIl7zF
  • Thin liquidity can concentrate volatility and nowhere is that more evident than with Dogecoin. $DOGEUSD was down as much as 38% today. Watch for heightened bouts of volatility amid quiet risk trends in the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/04/17/Dollar-Outlook-Ties-Into-Key-Data-Rate-Forecasts-and-Even-Dogecoins-Rally-.html https://t.co/JO7O7zUKe9
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/Vv3jZNbLWg
Forex News: Yen Flat as Japan’s Trade Gap Narrows, Machine Orders Fall

Forex News: Yen Flat as Japan’s Trade Gap Narrows, Machine Orders Fall

David de Ferranti, Currency Analyst

THE TAKEAWAY: Japanese trade deficit narrows to -¥471.3B for September, Machine Orders Fall -4.3% > Yen still supported by broader safe-haven demand > USD/JPY little changed

There has been little impact on the USD/JPY following the release of worse-than-expected Japanese machine orders and trade balance figures for September. Machine orders fell a further 4.3% month on month reflecting the 2nd consecutive month of declines for the figure and a reading more negative than the expected 2.1% decrease. Trade balance figures revealed that the trade deficit had narrowed from -644.5B Yen in August to -471.3B Yen for September however the reading was worse than the forecast -416.9B Yen.

What do these figures mean for Japan and the Yen?

A breakdown of the trade balance figures reveals that Japanese exports fell 10.5% in September compared with 12 months prior while imports rose 4.5% over the same period. Japanese trade has suffered significantly in 2012 due to weak global growth with exports to Europe and China having dropped significantly as demand there continues to weaken. Japanese exports to China have also continued to suffer in part due to continued tensions over the disputed ownership of an archipelago in the East China Sea.

The worse-than-expected reads on both pieces of data may give the Bank of Japan (BOJ) further support to conduct additional monetary stimulus which should cause the Yen to fall against the US Dollar. However we have seen broader Yen support following the flight to safe-haven assets in the wake of the re-election of US President Obama as forex traders turn their eyes to the“fiscal cliff” fiasco.

Understanding How to Interpret Trade Balance and Machine Order Readings

Trade balance figures represent the value of exports less than the value of imports. A negative figure reflects that imports are greater than exports for the period. Machine orders reflect Japanese manufacturers’ demand for capital equipment. These figures act as an important indication of the strength of the Japanese economy, which is highly dependent on exports for growth. As such the figures carry some weight in influencing the actions of the Bank of Japan and further monetary easing.

Forex_News_Yen_Flat_as_Japans_Trade_Gap_Narrows_Machine_Orders_Fall_body_Picture_5.png, Forex News: Yen Flat as Japan’s Trade Gap Narrows, Machine Orders Fall

USDJPY 5min Chart – Created Using FXCM Marketscope 2.0

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES