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4 Jun 2013
US trade balance next: impact on the USD/JPY
FXstreet.com (Córdoba) - Coming up next during the American session will be the release of the US trade balance for April, with consensus pointing for a $41.0 billion deficit following the $-38.8 billion reported in March.
"The deficit has extended now for several decades, and market measures US dollar strength on how much the deficit increases, or decreases", says Valeria Bednarik, chief analyst at FXstreet.com. "The trade deficit has more chances of widening than of shirking: expect a wider deficit to keep greenback under pressure, particularly against JPY. The wider the deviation from the expected number, the stronger should be the movement".
The US dollar has managed to regain the 100.00 mark against the yen following Monday's selloff. USD/JPY trades around 100.10 ahead of the trade balance figures, with immediate resistances at 100.40 (daily high) and 100.70 (Jun 3 high). On the other hand, supports could be faced at 99.30 (daily low) and 98.85 (Jun 3 low).
"The deficit has extended now for several decades, and market measures US dollar strength on how much the deficit increases, or decreases", says Valeria Bednarik, chief analyst at FXstreet.com. "The trade deficit has more chances of widening than of shirking: expect a wider deficit to keep greenback under pressure, particularly against JPY. The wider the deviation from the expected number, the stronger should be the movement".
The US dollar has managed to regain the 100.00 mark against the yen following Monday's selloff. USD/JPY trades around 100.10 ahead of the trade balance figures, with immediate resistances at 100.40 (daily high) and 100.70 (Jun 3 high). On the other hand, supports could be faced at 99.30 (daily low) and 98.85 (Jun 3 low).