Japan trade balance for the month of June was reported to turn positive on Monday (Jul/25/2016) this morning despite the value of the export and import of Japan continues to decline due to weak domestic and international demand.
Japan's annual exports declined 7.4 percent in June after jeblok 11.3 percent the previous month, as recorded in the report of the Ministry of finance Japan today. The median estimate of economists for export Japan was decrease of 11.6 percent. Meanwhile, import prices dropped 11.7 percent, following an annual decline in may amounted to 13.8 percent. Economists expect imports Japan will fall to 19.7 per cent in annual base.
As a result, Japan trade balance still increased to 692.8 billion Yen, while the trade balance with the adjustments recorded an increase as much as 335 billion yen.
Export demand has been weakening this year, along with weak international markets and skyrocketing yen Japan. Consequently, the manufacturer of Japan ever burdened, especially when the yen had reached high levels there were years against the U.S. dollar at the end of June following the United Kingdom's decision to leave the European Union.
However, in the last two weeks it's been depreciating Yen is quite drastic decrease in demand in respect of the assets is not at risk, while PRIME MINISTER Shinzo Abe returned to win the parliamentary elections on 10 July.
USD/JPY
USD/JPY rose 0.18 percent to 106.32 towards after Japan trade data released today. The market will focus on the Central Bank's monetary policy announcement of Japan of the BoJ month on this week, with the possible addition of stimulus from the central bank.
But a number of economists estimate the stimulus, Japan will probably be launched in time is not as fast as the market in connection with the alleged statement Kuroda last month that clearly rule out the possibility of funding directly or known as helicopter money.
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