Export Driven Japan Takes Another Hit while BoJ to Continue Easing, Yen Unmoved
THE TAKEAWAY: Merchandise exports contract by 10 percent, widening the deficit > Similar results, different day- BoJ continues to ease, trade figures oscillate > Yen little changed
The Japanese Yen was little changed as the export led economy saw a 10 percent reduction in goods leaving its ports during September while imports for merchandise products increased by 4.1 percent widening the merchandise trade deficit to 558.6 billion yen.
After the data release, Bank of Japan Governor Shirakawa said the central bank is conducting powerful easing and the economy is leveling off ‘more or less’. Moreover, Shirakawa said the BoJ will monitor the impact the European crisis may have on the economy.
Traders appeared to have very little reaction to slumping export figures and BoJ commentary as exports have been volatile since April of 2011, swinging between growth and contraction, and central bank policy makers have been conducting monetary easing for some time. Market participants appear to bid-up the Yen when risk aversion takes grip as the currency offers a safe-haven alternative to park cash.
USD/JPY, 1 Hour Chart
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