Anna 
The Japanese Yen (JPY) faced downward pressure following the release of Japan’s Merchandise Trade Balance data on Wednesday. The report revealed a notable increase in the trade deficit to ¥462.5 billion in April, a stark reversal from the previous surplus of ¥387.0 billion. This outcome surpassed market projections of a deficit of ¥339.5 billion. The depreciation of the JPY in recent times contributed significantly to the deficit, driving up the value of imports, which overshadowed gains from increased exports.
Japan’s Exports (YoY) registered a growth of 8.3% to ¥8,980.75 billion, marking the fifth consecutive month of expansion but falling short of forecasts for an 11.1% increase. Meanwhile, imports also saw robust growth, expanding by 8.3% and reaching a four-month peak of ¥9,443.26 billion. This surge in imports represented the strongest growth in 14 months, reversing the trend from a revised 5.1% drop observed in March.
Simultaneously, the US Dollar (USD) advanced in anticipation of the release of the Minutes from the Federal Open Market Committee (FOMC) meeting held on May 1, scheduled for publication later on Wednesday. The uptick in US Treasury yields provided support to the Greenback, contributing to its strengthening against other major currencies.
