Domestic demand remains subdued in Japan - BTMU

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, remarks the diminishing domestic demand in the Japanese economy.

Key Quotes

"The deterioration in Japan’s trade balance has been an important negative factor for the yen. The release overnight of the latest current account report from Japan revealed that Japan’s current account surplus widened by more than expected to a seasonally adjusted JPY384.6 billion in May."

"It was the second consecutive current account surplus since the introduction of the sales tax hike in April which has temporarily hit import growth. Japan’s trade deficit narrowed by JPY276.9 billion in May as the value of imports contracted by 2.9% while the value of exports expanded by 1.5%."

"Net trade is likely to make a significant positive contribution to real GDP growth in Q2 but will be more than offset by acute weakness in domestic demand. Trade data for the first two thirds of June was also released today and revealed that imports have rebounded strongly by an annual rate of 10.3% while exports expanded by a more modest annual rate of 1.1%. The report highlights that the recent narrowing in Japan’s trade deficit is likely to prove only temporary."

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Weekly Trading Forecast: Expect Heavy Seas Between NFPs, ECB and RBA

  2. Forex News

    US Dollar Likely to Reverse versus Japanese Yen in Week Ahead

  3. Forex News

    USD/JPY: Looking constructive for above 120.00 - TDS

  4. Forex News

    USD/JPY to close its seventh positive month since July; +200 pips monthly gain

  5. Forex News

    USD/JPY extends gains to 3-day high

Trading Center