- Japan’s April trade deficit at 0.21T JPY vs. 0.38T JPY expected
- Japanese exports down by 1.5% and imports up by 1.8% in April
- European banks closed for the holiday
Did Asian session forex traders go off on a long weekend or what? European and U.S. banks are closed for the holiday today and it looks like price action is also kicking back and enjoying a few piña coladas by the beach, leaving most pairs stuck in their ranges. GBP/USD is cruising sideways at the 1.5475 level (-0.04%), USD/CHF is laying flat on the .9428 area, and AUD/USD is floating around .7825 (-0.01%).
Number crunchers in Japan did check in the office today to print the latest trade balance, which indicated a narrower deficit of 0.21 trillion JPY for April versus the estimated 0.38 trillion JPY shortfall. Components of the report showed that exports were down 1.5% for the month while imports rose 1.8%, reflecting a slight drop in external demand and a pickup in local consumption.
Yen pairs reacted positively to this report, with USD/JPY leading the pack with its 17-pip gain (+0.13%), followed by GBP/JPY which is up 12 pips (+0.07%) and AUD/JPY which is higher by 10 pips (+0.11%).
The euro is still lagging behind its forex rivals, as concerns regarding Greece’s ability to meet its loan obligations popped up once more. European banks are closed for the holiday today, which means that there are no top-tier economic reports up for release and that liquidity could be lower in the upcoming trading session. Bear in mind though that this could pave the way for volatile price action in case Greece’s government officials or its creditors give any updates on the debt situation.
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