Japan’s economy emerged from a recession, growing in the first three months of 2016. Yet this did not translate into a rally of the Japanese yen.
Japan’s gross domestic product expanded 0.4% in the first quarter of this year according the preliminary estimate. Economists had predicted slower growth by 0.1%.
The yen had attempted to rally after the report, but the rally was short-lived. It looks like market participants were not impressed by the data and are still expecting additional stimulus from Japanese policy makers. As a result of such considerations, the currency was soft, especially against the extremely strong pound and the dollar.
USD/JPY surged 1% from 109.13 to 110.20 as of 20:55 GMT today. GBP/JPY soared 1.9% from 157.81 to 160.84. EUR/JPY ticked up from the open of 123.46 to 123.62 after falling to 122.95 intraday.
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