Japanese Yen Spikes Up On Weak China Trade Data

Japanese Yen Spikes Up On Weak China Trade Data


The Japanese yen climbed against its key counterparts in late Asian deals on Friday as investors purchased safe-haven assets after worse-than-expected Chinese trade data for July.
China's exports grew just 1 percent year-on-year in July, decelerating from 11.3 percent growth reported in June.
Imports also slowed in July. Overseas purchases increase at a pace of 4.7 percent year-on-year compared to 6.3 percent rise in June. Economists expected import growth to pick up to a rate of 7 percent.
The trade surplus fell to $25.15 billion from June's $31.72 billion. This was expected to rise to $35.05 billion.
The final figures from the Ministry of Economy, Trade and Industry showed that Japan's industrial output increased modestly in June, in contrast to preliminary estimates for a slight decrease. Industrial production increased a seasonally adjusted 0.4 percent month-on-month in June, defying preliminary estimates for a 0.1 percent decline.
Annually, overall industrial output decreased 1.5 percent in June, slightly sower than 1.6 percent fall estimated earlier, the agency said.
The yen climbed to 1-week highs of 80.12 against the Swiss franc and 96.18 against the euro with 79.00 and 95.00 seen as the next resistance levels, respectively. At Thursday's close, the yen was worth 80.54 against the franc and 96.70 against the euro.
Germany's EU harmonized inflation came in below the preliminary estimates in July, final data released by the Federal Statistical Office showed today.
The harmonized index of consumer prices (HICP), measured under the EU methodology, increased 1.9 percent annually in July, slightly slower than the 2 percent gain estimated earlier. In June, the inflation rate was 2 percent.




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