USD / JPY
Industrial production throughout Asia is falling. Yesterday, the data on Chinese Industrial Production for January showed a decline in the rate from 7.2% YoY to 6.0% YoY, with a remarkable decrease in fixed assets investments from 7.9% YoY to 7.5% YoY. While the final report of Japanese industrial production in February showed zero growth against 4.1% in the initial estimate. The data were reflected in the trade balance for March, which was published this morning. Exports totaled 2.1% YoY against 1.8% YoY in February, but the outlook was more than 4.7% YoY. Imports showed -0.6% YoY against the forecast of 5.4% YoY and 16.6% YoY(!) In February. Thus, the seasonally adjusted trade balance became positive (0.12 trillion yen) vs. -0.21 trillion yen earlier, but this is a low-quality gain due to a collapse in imports.
The Japanese stock market traditionally grows due to the increase of US indices. S & P500 added 1.07% yesterday, while Nikkei225 today is growing at 1.48%. Also, the summit between the leaders of the United States and Japan is optimistic for the markets. At the same time, US President Donald Trump's meeting with Kim Jong is under preparation.
We are looking forward to further growth of the Japanese to 108.00 and 108.50.
* The presented market analysis is informative and does not constitute a guide to the transaction.
