The USD/JPY pair continues strengthening under the influence of investors’ demand for the USD; the Japanese statistics can’t stand such attack.
The Japanese Yen is still weakening. This downtrend started on November 4th
, back-and-forth from time to time, and right now the situation is in favor of the USD/JPY buyers. The current quote for the instrument is 107.81.
Today’s statistics showed that the Japanese GDP in the third quarter 2016 improved by 0.5% q/q after adding 0.2% q/q over the previous period. On a year-on-year basis, the indicator expanded by 2.2% after increasing by 0.7% in the second quarter. However, the nominal GDP in the third quarter was 0.2% against the previous number of 0.3%. The GDP Deflator, in its turn, lost 0.1% y/y. The components of the report show that the private consumption added 0.1% in the third quarter, and the business expenditures remained unchanged.
The fact that the Japanese economy’s improvement last quarter was better that expected is surely positive. One can argue about some of the components, which look not too good, but is general, the statistics is positive. Another report, the Japanese industrial production in September, also showed growth, this time by 0.6% m/m (+1/5% y/y). This indicator is strengthening for the second straight month, which is also rather good: the industrial production sector may become a strong foundation for the global GDP.
Although the September’s growth of the industrial production wasn’t as impressive as it could be when it comes to a year-on-year basis, it surely influenced the overall GDP of Japan.
RoboForex Analytical Department
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