Investing.com - Financial Markets Worldwide
Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - USD/JPY slightly lower following trade deficit news

Published 03/20/2013, 10:25 PM
Updated 03/20/2013, 10:26 PM
USD/JPY
-
EUR/JPY
-
AUD/JPY
-
NZD/JPY
-

Investing.com – The Japanese yen is trading modestly lower against the U.S. dollar in Thursday’s Asian session following some downbeat trade deficit news out of Asia’s second-largest economy.

In Asian trading Thursday, USD/JPY is lower by 0.06% at 95.96. The pair is likely to find support at 95.80 and resistance at 96.

Earlier today, Japan’s finance ministry said shipments slipped 2.9% in February, far worse than 1.7% decreased economists expected. Imports climbed nearly 12% creating an overall trade deficit of USD8.1 billion.

While the yen is down 10% against the greenback on a year-to-date basis, economists noted it takes some time for the slumping currency to have a positive impact on Japan’s trade situation. The February trade deficit was the eighth consecutive for Japan, marking the country’s worst such string in more than three decades.

Japan’s exports to China slipped 15.8% last month, a drop attributed to the Lunar New Year, but ongoing weakness in the euro zone is also hampering Japanese exporters. Japan, the world’s third-largest economy behind the U.S. and China, saw its imports to the European Union slide 9.6% in February.

On Monday, Goldman Sachs boosted its forecast for Japan’s 2013 GDP growth to 2.3% from 2.1%, noting the weaker yen is often quickly seen in imports, but that benefits to exporters take longer to materialize.

Meanwhile, there is chatter that new Bank of Japan Governor Haruhiko Kuroda may make remarks later today about regarding quickly reaching Japan’s desired 2% rate of inflation.

Elsewhere, EUR/JPY is up 0.07% at 124.30 while AUD/JPY is lower by 0.02% at 99.64. NZD/JPY is soaring 0.54% to 79.38 on the back of a strong-than-expected fourth-quarter GDP report out of New Zealand.


Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.