Japan posts biggest monthly current account surplus since 2007 - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the most eye-catching data release overnight was the biggest monthly Japanese current account surplus since 2007 (Y3trn).

Key Quotes

“Low oil prices have been doing wonders for Japan’s balance of payments. However, on an annual basis, the current account surplus (Y18trn, just over USD 160bn) is actually smaller now than annual net purchases of either foreign bonds or foreign equities.

Over the last couple of years, encouraged by BOJ policy, Japanese investors have fallen in love with foreign assets again and that doesn’t sit comfortably with the notion of an ever-stronger yen. I’m still trying to figure out an entry level for a short yen trade.”