Fundamental data in Japan continues to highlight the challenges facing the Japanese economy as Central Bank and Government officials work quickly to introduce new stimulus measures to help spur a rebound in trade and economic activity. The one main lingering concern is inflation, with the consumer price index set to be released later in the week ahead of the monetary policy decision due from the Bank of Japan on Friday. Trade activity is one considerably source of weakness after the Ministry of Finance data showed that imports slumping by -18.80% year over year. Although the figure beat estimates of a -19.70% contraction, the pace of decline has raised some concerns about the outlook for the trade environment. Meanwhile, exports eased their own pace of loss, shrinking by only -7.40% during June. The Yen is trading slightly weaker against the US dollar after the weekly reopening, rising to 106.22.
Japanese Trade Surplus Rebounds
Daily Analysis - 25/07/2016