Trade Desk Thoughts - Japanese Trade Balance

Daily Forex Fundamentals | Written by TheLFB-Forex.com | Aug 21 08 01:11 GMT |

Actual 0.17T, Expected 0.35T, Previous 0.14T

Release Explanation: This report measures the difference between the total value of exports and the total value of imports. A positive figure indicates a trade surplus while a negative value represents a trade deficit. Because Japan's economy is highly export-led, trade data can give critical insight into developments in Japan's economy and changes into foreign exchange rates.

Trade Desk Thoughts: Shipments from Japan rebounded in July. Exports to China picked up as demand from the U.S. waned. This is the first time that China has surpassed the United States. Even so, the Bank of Japan has gone on record to say that they feel that growth has become 'sluggish' for the first time in more than a decade while citing the cause as weakening export demand and higher commodity costs. Imports into Japan rose 18.2 percent, the fastest pace in two years.

Forex Technical Reaction: As of right now, the Japanese yen is seeing signs of strength as it runs into the support of the S1 area at 109.50.

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