Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Yen Steady, Nikkei Falls as Japan GDP Data Creates Risk Aversion

Yen Steady, Nikkei Falls as Japan GDP Data Creates Risk Aversion

Bradley Kearns, Contributor

Talking Points:

  • Yen showed a tepid reaction as the Nikkei 225 opened lower after Japan’s GDP figures
  • Japan’s quarterly contraction indicates that the economy is in a technical recession
  • The soft GDP numbers created risk-aversion in the early Asian trading session

Want free access to premium content on DailyFX PLUS? Sign up for a 14-day trial here.

The Yen showed a tepid reaction against the US Dollar as quarterly GDP data from Japan showed the country is in a technical recession. The economy’s third quarter preliminary figure displayed a contraction of 0.2 percent which matched the prior revised reading but was below the 0.1 percent expected decrease. The annualized print disappointed as well. The markets’ forecasted a fall of 0.2 percent but received a drop of 0.8 percent instead. This was worse than the 0.7 percent revised decline in the last period.

This data created risk aversion early in Asia’s trading session. The Nikkei 225 index opened lower after the GDP figures were released. In regards to monetary policy, the Bank of Japan has noted that it is confident the current stimulus package can reach its desired goals without further expansion. According to overnight index swaps, traders are not expecting the central bank to alter its monetary policy stance over the next twelve months.

Comments from Japan’s Economic Minister Akira Amari after the data release:

  • Excluding inventories, economy grew in quarter
  • Business managers still have a deflationary mindset
  • Expects economy may return to growth in fourth quarter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES