Japanese Yen Stumbles As Current-Account Deficit Trumps Expectations

By Eric Andersen,

THE TAKEAWAY : Japanese Annualized GDP Shrinks 0.7%, Current-Account Deficit Widens to ¥437.3 billion > Surprised by the Deficit Jump, Traders Move Away from Yen > USDJPY Jumps

Data released by Japan’s Ministry ofFinance showed the nation’s current-account deficit expandedto a record low of 437.3 billion Yen in the month of January. The Economic andSocial Research Institute also published data that revealed a 0.7percent decline in the country’s gross domestic product(GDP), narrowly missing analysts’ expectation of a 0.6percent drop.

Though the Japanese GDP fell slightly belowforecasted, analysts were mostly surprised by the large deficitincrease. Since markets expected only a 320 billion Yen deficit, traders rebalanced theirportfolios away from the Yen. The USDJPY peaked as high as 81.351following the data releases.
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/market_alert/2012/03/08/Japanese_Yen_Stumbles_as_Current-Account_Deficit_Trumps_Expectations.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

More from Currencies

Bitcoin Today: Prices Close to Flat in Low-Volume Trading

Bitcoin Today: Prices Close to Flat in Low-Volume Trading

Markets Wobble as U.S. Readies More China Tariffs

Markets Wobble as U.S. Readies More China Tariffs

Watch These Two Crypto Experts Fiercely Debate the Future of Regulation

Watch These Two Crypto Experts Fiercely Debate the Future of Regulation

Bitcoin Today: Prices Attempt to Rally Following Early Weakness

Bitcoin Today: Prices Attempt to Rally Following Early Weakness

Ether Prices Rally After SEC Director Says He Doesn't Consider It a Security

Ether Prices Rally After SEC Director Says He Doesn't Consider It a Security