Japanese Yen Unchanged After Trade Data, Eyeing FOMC Meeting
- Japan’s Trade Deficit -¥909.0Bin May vs. -¥1189.3B Expected; -¥811.7B in April
- Exports Declined 2.7 Percent WhileImports Declined 3.6 Percent Year-on-Year
- USDJPY Unmoved on Trade Data as Markets Focus on Looming FOMC Outcome
The Japanese Yen was little-changed against the US Dollar as Japan posted a narrower-than-expected trade deficit in May as markets await the upcoming US Federal Reserve policy meeting. The Ministry of Finance in Japan reported a trade deficit of -¥909.0B in May compared to an expected -¥1189.3B; the trade balance was -¥811.7B in April.
Figures also showed that exports compared to the same period last year fell by 2.7 percent in its first decline in over a year, while imports fell by 3.6 percent. Of note was the slight increase in exports to China, by 0.4 percent, while exports to the United States dropped by 2.8 percent.
USDJPY remained largely unchanged following the data release as markets looked ahead to the upcoming FOMC monetary policy announcement. Currency Analyst Christopher Vecchio cites tepid signs of a Q2 economic snapback in the US economy as a key concern moving into the meeting. While economists widely expect the Fed to maintain its federal funds rate at 0.25 percent, the result of the sit-down can still drive dramatic volatility.
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USDJPY (15min chart) – 6/17/2014 | Created with FXCM Marketscope
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