Japanese yen is heading higher today, gaining against its major counterparts as the latest trade news and industry activity data are released. It looks as though Japan’s economy is picking up steam, and that is providing some support to the yen.
October’s trade deficit data showed a widening in October. Imports rose sharply, and exports rose more than expected. The trade gap in Japan grew to 1.09 trillion yen in October. There had been a trade deficit of 810 billion yen predicted, so these numbers when beyond that.
Additionally, the numbers for industrial data have been released. Japan’s All Industry Activity Index for September showed a month over month increase of 0.4 per cent. This was a little disappointing, since the forecast was for 0.5 per cent.
The news points to improvements to the Japanese economy, and the yen is benefiting as a result. However, if Japanese officials don’t feel as though the economy is making enough progress, they could intervene to weaken the yen in the name of stimulus. But, for now, leaders seem content to let matters take their course.
At 14:43 GMT USD/JPY is lower, dropping to 99.8900 from the open at 100.1940. EUR/JPY is also down, falling to 135.2125 from the open at 135.6520. GBP/JPY is down to 161.4920 from the open at 181.5700.
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