Yen Drops on Slowing Economic Growth, Trims Losses Later

The Japanese yen dropped intraday as most macroeconomic reports released in Japan today were disappointing. By now, though, the currency has trimmed its losses, erasing them against some rivals outright.
Japan’s gross domestic product fell 0.3% in the third quarter of this year from the previous three months. The drop followed the 0.8% increase registered in the preceding quarter. The GDP Deflator dropped 0.3% year-on-year after showing no change in the previous quarter. Analysts had predicted a smaller drop by 0.1%.
The Indices of Tertiary Industry Activity fell 1.1% in September from the previous month, whereas experts had forecast a decrease by just 0.4%. Industrial production showed opposite results, demonstrating a decline by 0.4% in September versus the forecast drop of 1.1%.
USD/JPY traded at 113.84 as of 8:56 GMT today after opening at 113.80 and rising to the daily high of 113.99. EUR/JPY rallied from 128.44 to 128.98 intraday before retreating to 128.46 later. GBP/JPY traded at about its opening level of 147.67 following the earlier rally to 148.42.

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