Japanese Yen Unmoved by Better-Than-Expected 2Q GDP Figures
- Japan GDP -6.8% q/q (Annualized) in 2Q vs. -7.0% Expected; 6.1% in 1Q
- Japan GDP -1.7% q/q in 2Q vs. -1.8% Expected; 1.5% in Prior Quarter
- Yen Little-Changed as Data Highlights BOJ Outlook vs. Risk Trends Divide
The Japanese Yen was little-changed against its major global counterparts after Japan reported its second-quarter GDP data. The annualized quarter-on-quarter GDP figure printed at -6.8 percent, the lowest since the second quarter of 2011, although reporting higher than the expected -7.0 percent. Last quarter’s figure was revised significantly downward from 6.7 percent to 6.1 percent. The quarter-on quarter GDP change was reported at -1.7 percent, also higher than the expected -1.8 percent, with last quarter’s data being revised from 1.6 percent to 1.5 percent.
On one hand, the better-than-expected GDP print may have marginally reduced the probability of BOJ stimulus expansion in the minds of investors, which is Yen-supportive. On the other hand, a relatively smaller drop in output than economists projected bodes well for risk appetite, which works against the safe-haven Japanese unit. These conflicting cues coupled with an outcome that deviated only slightly from consensus forecasts probably made for the indecisive response from price action.
USDJPY [5 mins – 08/13/2014] Chart created using FXCM Marketscope.
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