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17 Mar 2016
JPY: Smaller than expected trade surplus - BBH
Research Team at BBH, notes that the Japan reported a smaller than expected trade surplus in February.
Key Quotes
“The JPY242.8 bln surplus was a little more than half of what the market expected, but it still showed improvement, as it always does (since early the 1970s without fail) over January.
Exports were weaker than expected while imports did not contract as much as forecast. The yen is taking its cues, it would appear, from the drop in US yields and the generally weaker US dollar. The dollar is approaching key support near JPY111.00, which caught the double lows from February. A break could see stops triggered, and the move accelerate.”
Key Quotes
“The JPY242.8 bln surplus was a little more than half of what the market expected, but it still showed improvement, as it always does (since early the 1970s without fail) over January.
Exports were weaker than expected while imports did not contract as much as forecast. The yen is taking its cues, it would appear, from the drop in US yields and the generally weaker US dollar. The dollar is approaching key support near JPY111.00, which caught the double lows from February. A break could see stops triggered, and the move accelerate.”