Global demand questions still…

If China is the spark for global demand, why are Japanese exports to China still in the proverbial toilet? If Europe is on the road to recovery, why have Japan exports to the continent been crushed?

In the AP story regarding the dismal export performance for Japan in July, noted above, were these tidbits of information:

The Single currency has peaked out today with the optimistic Germane IFO release of August this morning which was expected to be 88.6 and it has surprised the market by 90.5. The IFO expectations have gone up to 95 in August from just 90.4 in July and it was expected to be just 91.6 while the current conditions figure has increased to 86.1 and it was expected to be 86.1 which reflect the current market optimism of the coming future but the current conditions have not seen a major variety yet. The single currency has met a selling pressure on touching 1.435 after these data amid greenback buying as the dovish US equities performance today but it has just found an intraday support at 1.421.

The Japanese yen was under pressure recently because of Ben Bernanke's optimistic speech by the end of last week about the worst of the credit crisis which is looking behind of us currently focusing on the current tackles in front of a reliable economic growth after the credit crisis. His comments have spurred a new wave of cheeriness driving the stocks markets up with the end of last week amid better than expected data from the housing market after the release of  July US existing homes sales which were forecasted to be up by just 2.7% but they have surprised the market by grown up by 7.2% improving the investors' risk appetite to buy stocks selling the low yielding currencies such as the greenback and the Japanese yen. Dow close last week above 9500 and its future is trading right now above this level at 9520.

The British pound came under pressure today after the release of UK PSNB which have shown an unexpected increasing of the public net borrowing by 8 Bln Stg and the market was waiting for just 200 M. These data dampen the current national debit situation further putting pressure on the British pound which has found a breathing in today release of UK retail sales which rose by 3.3% y/y last month and they were expected to rise by just 2.7% after rising in June by 3.1%. The cable was already depressed by yesterday release of the MPC minutes of its recent meeting when it has surprised the market by adding further 50b Stg to its 125b Stg stimulation quantitive easing plan to make the gross of it 175b decision. This decision was expected to be unanimously but the market has been shocked by 3 members of the MPC voting for adding 75B Stg instead of just 50B Stg and one of those three was Marvin king himself. These opposing members have referred to the possibility of public confidence damage in the recovery which can flatter it suggesting that the inflation could be under the BOE target for a sustained period.