JPY Posts on Forex Blog
Asian Forex News: New Zealand Disappoints, Japanese Inflation Hits Decade High
Jun 26, 2008
All signs point to a rate cut for the Kiwi.
New Zealand's trade deficit grew by $196 million in May. This was far worse than the expected rise of $150 million. Thats nearly a $250 million swing!
Merchandise exports were up 11.2% year over year. However, merchandise imports were up 17.3%.
This comes on the heels of yesterday's current account deficit, which was an alarming $13.8 billion, 7.8% of GDP.
Considering the strength of the Tui oilfield and dairy prices, this is indeed worrying news for the Kiwis.
To top that off, New Zealand Q1 GDP was finalized at 1.9%, slightly worse than the expected 2.1%.
And the gloomy news kept on coming out of Asia.
Japan reported a jump in inflation from 0.9% in April to 1.5% in May. This is the largest month over month increase in a decade. However, traders need to keep some perspective. Japan reintroduced a fuel tax in May, which may account for some of the rise.
Separately, Food prices rose 2.4%, Like many other countries, japan excludes food when calculating CPI.
Japan's household spending also fell -3.2% in May, larger than the expected reading of -2.2%.
On the plus side, japanese unemployment remained flat at 4%, as expected.
Relevant Forex prices At 11:30pm est
USDJPY 106.970 (-0.990, -0.92%)
AUDJPY 102.35 (-1.20, -1.16%)
EURJPY 168.28 (-0.97, -0.57%)
NZDUSD 0.7565 (-0.0008, -0.11%)
NZDAUD 1.2636 (-0.0020, -0.16%)
EURNZD 2.0786 (+0.0091, +0.44%)
inflation, GDP, CPI, JPY, NZD, Yen, Kiwi
Japan Economy Grows More Than Expected, Yen Edges Up Against Dollar
May 15, 2008
Japan's economic revival continued, with news the economy had grown 0.8% in Q1 2008 (3.3% annualized). This was the 3rd staright quarter of expansion, diven by exports and private residential investments. This was 0.01% over the expected 0.7% for the first quarter. The Nikkei was up 0.6%
Forex traders reacted tepidly, sending the Yen up 0.07% (104.89 ¥) in late trading. Considering the weak US manufacturing data (see below), and the recent dollar peak of 105.70 hit earlier this month - this is far from a resounding vote of confidence for the yen.
Read more at Fox News
GDP, JPY, Yen
Greenback Up Against Swiss Franc, Yen, GBP
May 6, 2008
US Treasuries continued to gain ground against other currencies. Against the Yen, the Dollar was trading at 104.81 (+0.12). The dollar aslgo gained ground on the pound sterling (+0.15) and the Swiss franc (0.009).
Read more at CNBC
Greenback, JPY, Franc, Yen, GBP, Pound, USD
As Volaitility Eases, Carry Trades Increase
Apr 28, 2008
The DailyFX.com Carry Trade Index rose $296 (0.01%) to end the week at $28,414. Forex traders are taking note of the calmer markets, as carry trades have been increasing while volatility decreases.
However, many traders are concerend that high yielding currencies such as those in Australia and New Zealand will soon have to follow suit with rate cuts. As a result, the narrower trades (such as USD/JPY and GBP/JPY) have been increasing while the upper end of the curve has been falling.
Read more at Yahoo
JPY, Carry Trade, USD
