Japan Reports Trade Deficit; Expecting FOMC Meeting Minutes - 22.8.2012
The US dollar gained some ground in the morning versus the Canadian and Australian currencies and Asian stocks dropped as Japan posted a wider than expected trade deficit for July. Japanese index Nikkei lost almost 0.3% as the Finance Ministry showed the trade balance deficit reached 517.4 billion yen, compared to a 60.3 trillion surplus in June. Exports fell by 8.1% in annual terms amid euro area debt problems and lower demand from China. Exports to Japan’s largest trading partner fell by 11.9%.
Later in the day investors are waiting for the outcome of negotiations between Greek leaders and Luxembourg Prime Minister Jean-Claude Juncker. Greek Prime Minister Antonis Samaras said the nation needs more time to meet the requirements of austerity measures required by international creditors. The euro is still trading close to its 7-week high versus the greenback, 1.2487, reached yesterday. Home sales data from US today and FOMC meeting minutes will be also of a great interest.