The Japanese yen dropped today even though economic data from Japan was better than economists’ expectations. Market analysts thought that the reason for the drop was the improvement of the traders’ sentiment.
Japan’s gross domestic product contracted 0.3 percent in the second quarter of this year. It was not a very good reading by itself, but at least it was a tad better than the consensus forecast that had promised the same 0.4 percent rate of decline as in the preceding three months. The yen did not benefit from the better-than-expected data as market participants were speculating that the US Federal Reserve will not embark on monetary tightening this month, and such talks made traders more willing to risk.
USD/JPY rose from 119.26 to 120.00 and EUR/JPY advanced from 133.19 to 133.96 as of 12:43 GMT today.
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