OctaFX | OctaFX Forex Broker
Sign in
Open account
Back

Yen not weak enough for exporters - BBH

FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted Japan’s trade deficit worsened in July.

Key Quotes:

"Japan’s trade deficit worsened in July, though higher imports could have been due to seasonal effects. The trade account posted ¥964.0 bln deficit vs. expected at ¥713.9 bln yen deficits."

"On a seasonally adjusted basis, it’s deficits slightly decreased to ¥1023.8 bln yen from ¥1067.8 bln yen in June. Exports rose 3.9% y/y, supported by a rise in export prices on a yen basis, while export volume expanded 0.9% y/y."

"The weaker yen helped exporter’s net profit but has still not contributed to expanding the market share of Japanese products in global markets. The biggest shock was imports rising 2.3% y/y vs. expected at -1.5% y/y."

"But this is likely due to a higher oil price which is up 6.9%. Imports remain stagnant, falling 0.4% y/y due to weak private consumption after the sales tax hike."

Central bank communication challenges - BBH

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted that the Federal Reserve, the ECB and the Bank of Japan’s communications have challenges.
Read more Previous

USD/JPY at 4-month highs ahead of FOMC minutes

The USD/JPY remains near daily highs ahead of the release of the FOMC minutes.
Read more Next
Start livechat