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