Dollar falls to 2-week low against Japanese yen

US dollar fell during the Asian session to bounce in the fifth session of seven from its highest since May 31 against the Japanese yen following developments and economic data releases by the Japanese economy, the third largest economy in the world, and on the threshold of developments and economic data expected on Thursday by The US economy.

As of 05:52 GMT, USD/JPY fell by 0.25% to 107.68 from the opening of 107.95, after hitting its lowest level since July 3rd at 107.64, and its highest at 108.00.

We followed the Japanese economy's reading of the trade balance index, which showed the deficit has shrank to 14 billion yen against a surplus of 622 billion yen in May, exceeding expectations that the deficit shrank to 141 billion yen, while the seasonally adjusted index The same as a surplus of 590 billion yen against a deficit of 968 billion yen in May, also outperforming expectations of a surplus of 404 billion yen.

To the annual reading of exports, which fell to 6.7% from 7.8% in the previous reading for May, below expectations of a decline of 5.4%. The annual reading of imports showed the decline to 5.2% compared to 1.5% Earlier than in May, worse than expectations of a contraction of 0.2%.

This comes hours after Bank of Japan Governor Haruhiko Kuroda said that the Japanese economy will continue to grow at a moderate pace and domestic demand is stable, noting that there are many risks that threaten the outlook for global economic growth and its evidence that the global economy is growing at a moderate pace, adding that the Japanese central bank may expand the adoption of stimulus in the case of weakening inflationary pressures, which hinders reaching the inflation target at 2%.

On the other hand, Investors are currently waiting for the US economy to release its reading for the Jobless Claims for the week ending on the 13th of this month, which could reflect a rise of 7K to 216K vs. 209K in the previous week's reading, while the investors claims for the week that ended in the sixth of this month may decrease by 23 thousand applications to 1,700 thousand applications against 1,723 thousand applications.

Markets are also looking for the release of the Philadelphia Manufacturing Index, which may reflect a widening of 5.0 versus 0.3 in June, ahead of the CB leading index reading, which could show 0.1% growth versus zero in May, in addition to the Federal Reserve Bank of New York Chairman John Williams speech on monetary policy at the annual meeting of the Central Bank Research Association in New York.