USD/JPY Exchange Rate Steady After Japanese Trade Statistics
- USD/JPY gave a lukewarm response to Japan’s trade data
- Trade Balance ¥188.7 in Dec. vs ¥305.3b forecasted and -¥271.5b in November
- News-flow appears not to have weighed on market speculation for BoJ policy
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The USD/JPY exchange rate displayed a tepid reaction after Japan’s trade statistics crossed the wires. The country’s trade balance in December showed a surplus of ¥188.7 billion, lower than the expected ¥305.3b but higher than the deficit in November of ¥271.5b. The current account for the same period fell below the forecast of ¥1051.7b and the previous ¥1143.5b figure by showing a print of ¥960.7b. However, the adjusted figure surpassed economists’ estimate. December’s print was ¥1635.4b as opposed to the ¥1590.0b expectation and November’s reading of ¥1423.5b.
The lackluster response from the unit may reflect the markets’ speculation that the news-flow may not weigh on the Bank of Japan’s policy decisions. The central bank is using accommodative measures in an attempt prop-up inflation to reach the 2 percent target.
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