Japan's trade data: what's the widening deficit saying?

Japan's trade deficit widened to ¥1.1 trillion in August as imports jumped 28% (report). Energy imports and the weak yen make the trade picture central to the yen's story.

Japan's trade data: what's the widening deficit saying? — central bank rate path diagram
A central bank's policy rate path across recent meetings

What's your read?

  • how the deficit fits the yen's outlook
  • the import drivers you're watching
  • how the BoJ weighs the trade picture
Japan's trade data: what's the widening deficit saying? — risk-reward diagram
A risk-reward ratio of 1 to 2

Background: trade balance explained.

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