Even though the GDP report for Japan wasn’t as optimistic as hoped for, there is evidence of recovery, and that is helping the yen a little bit today in Forex trading. Yen is higher against its major counterparts.
The latest GDP report from Japan indicates that the annualized growth rate for the economy was at 2.2 per cent in the three months through December. While this indicates that the Japanese economy continues to grow, the disappointment comes with the fact that many had expected to see a 3.6 per cent number.
Much of the GDP growth came from exports, which isn’t all that surprising, considering the fact that the yen has been kept weak by the economic policies of Prime Minister Shinzo Abe. While it appears that the Japanese economy is making some progress, there are still concerns that consumer spending isn’t picking up. While it’s nice to see an increase in exports, the situation in China, with slowing, could mean that things won’t remain the same. Plus, there are plenty of concerns about what’s happening in Europe.
At 12:25 GMT Japanese yen is gaining ground, however. USD/JPY is down to 118.2450 from the open at 118.2500. EUR/JPY is down to 134.9050 from the open at 134.9550. GBP/JPY is down to 182.3980 from the open at 182.4150.
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