Posts

Showing posts with the label eight-major-currency-pairs

PROFILES AND UNIQUE CHARACTERISTICS OF MAJOR CURRENCY PAIRS

Image
CURRENCY PROFILE: JAPANESE YEN (JPY) _____________________________________________________________ Broad Economic Overview Japan is the third largest economy in the world with GDP valued at over US$4.2 trillion in 2006 (behind the United States and the entire Eurozone or EMU). It is the second largest single economy. The country is also one of the world’s largest exporters and is responsible for over $500 billion in exports per year. Manufacturing and exports of products such as electronics and cars are the signature drivers of the economy, accounting for nearly 20 percent of GDP. This has resulted in a consistent trade surplus, which creates an inherent demand for the Japanese yen, despite severe structural deficiencies. Aside from being an exporter, Japan is also a large importer of raw materials for the production of goods. The primary trade partners for Japan in terms of both imports and exports are the United States and China. China’s inexpensive goods have helped the