Yen Little-Changed After Final Revision of 2Q GDP Beats Estimates
- USD/JPY indifferent after final revision of 2Q Japanese GDP figures
- Annualized 2Q GDP 0.7% vs. 0.2% expected, 2.1% recorded in 1Q
- Yen may be muted as BOJ divisions feared to have paralyzed policy
The Japanese Yen was little-changed as the final revision of second quarter GDP beat expectations. Recent reports of a split within the Bank of Japan about the future of negative rates may still have the market’s attention.
The data showed that the economy grew at an annualized pace of 0.7 percent in the three months through March, topping earlier estimates projecting a 0.2 percent increase. The outcome still showed a slowdown in the world’s third largest economy however, which grew 2.1 percent in the first quarter.
The update may have fueled spculation about changes in Bank of Japan policy as it prepares to deliver a comprehensive assessment its easing efforts later this month. A recent Senkai report highlighting divisions among BOJ officials may have fueled fears of paralysis however. With that in mind, the markets may have discounted the central bank’s ability to act regardless of incoming news-flow.
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