By FX Empire.com
The USD/JPY pair dropped early Wednesday to reach its lowest level in seven days, as fears of another intervention from the Bank of Japan waned and drove the yen to record gains against other major currencies especially amid jitters and wide risk aversion on the worsening outlook for Europe.
On the other hand, the September trade balance in Japan showed an unexpected surplus of 373.2 billion yen compare to the previous deficit of 694.7 billion yen.
The unexpected surplus indicated that the Japanese exports are doing well, and the higher value of the yen did not hurt the nation’s recovery as badly as expected, encouraging traders to buy the Japanese currency against most of its major counterparts.
On Thursday at 23:50 GMT (Wednesday), Japan will issue Machine Orders for September, where it had a prior reading of 11.0% and expected to come at -6.9%, while the annual reading is expected to come at 11.4% from the previous reading of 2.1%.
At 12:30 GMT, the U.S. economy will release the Import Price Index for October, which had a previous reading of 0.3% and it’s expected to come at 0.3%, on the other hand the annual Import Price Index had a prior reading of 13.4%.
Trade Balance for September will be released at the same time, where the previous deficit was $ 45.6 billion and expected to widen to $46.0 billion.
At 12:30 GMT, the U.S. economy will release its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance dropped to 397 thousand last week.
Originally posted here
