The Japanese yen rallied against its most-traded rivals today on bad macroeconomic releases in China and uncertainty about the situation in Great Britain. By now, the currency has trimmed its gains, losing them against some of the peers outright.
China’s trade balance surplus widened to $57.06 billion in December from $53.85 billion in November. While the data looked good on surface, actually both imports and exports declined, it is just that imports fell more than exports. Exports dropped 4.4%, demonstrating the biggest drop in two years. Imports slumped 7.6%, the most since July 2016.
Meanwhile, uncertainty about the Brexit vote persists. That added to the strength of the yen as investors tend to stick to the currency during times of uncertainty and fear.
USD/JPY declined from 108.54 to 108.16 as of 17:41 GMT today. EUR/JPY was down from 124.38 to 123.77 before bouncing to 124.14 later. CHF/JPY rose from 110.18 to 110.35 after touching the low of 109.84 earlier.
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