USD/JPY Sinks as US Economy Contracts 2.9% in First Quarter
- US Final Revision of First-Quarter GDP -2.9% vs -1.9% estimated
- Japanese Yen Rises US Dollar Following Data Release
- Euro Rises vs US Dollar Following Data Release
The final revision of first-quarter GDP disappointed as the economy contracted 2.9 percent, missing analyst estimates calling for a print of 1.9 percent. Economic output declined at the fastest pace since 2009. Although the figure reported worse than expected, DailyFX Strategist Ilya Spivak says that the trend in US economic data has broadly (if unevenly) continued to improve since early April. With this in mind it is possible that market participants may re-evaluate US Dollar weakness following last week’s FOMC announcement.
The economic release prompted a bearish USD/JPY reaction.
USD/JPY 5-Minute Chart using FXCM Marketscope 2.0
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to email@example.com.
Want to trade with proprietary strategies developed by FXCM? Find out how with Mirror Trader.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.