JPY GDP Grows Unexpectedly Higher, Heavier Euro on Weaker EZ GDP Change | IFCM UAE
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JPY GDP Grows Unexpectedly Higher, Heavier Euro on Weaker EZ GDP Change - 16.5.2013

The USDJPY declined from yesterday highs at 102.75 towards downside hurdle at 101.97, that limited further lows as Japanese preliminary GDP for Q1 increased by 0.9% beating estimates of a 0.7% advance and up from previous quarter 0.3% increase. Annualized Q1 GDP displays a 3.5% expansion, higher than forecasts of 2.7% and much more than previous quarter growth of 1%. Weaker Yen boosted Japanese exports and that in turn positively contributed to GDP growth, another factor positively influencing growth was the recently adopted stimulus program by Bank of Japan and the government. Next target is fighting back deflation, which resists steadily as Japanese GDP Deflator decreased by 1.2% in the Q1, more than projections at -0.9% and down compared to -0.7% the previous quarter. The currency pair negative wave was limited by 101.97 and was mainly in sideways during releases rebounding slightly in recent trading to 102.49.


The Euro yesterday sank to lower ground against the greenback as GDP reports for Europe made the common currency heavier. German GDP in Q1 increased less than estimated while Italian and French GDP contracted more than projected, eventually Eurozone GDP in Q1 dropped by 0.2%, more than estimated minus 0.1% change but better than previous quarter of -0.6%.



The sterling versus the US dollar was in 1.5269/1.5193 range bound, pausing for the time being the bearish momentum as Jobs report for April was better than expected. April UK Claimant Count reduced by 7.3K, it fell more than estimates of -3.1K. Unemployment rate for March was also lower by 0.1% to 7.8% compared to 7.9% in February. Looking ahead, CPI for Europe and US will be released today as well as US Unemployment Claims.
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