- Japan’s Annualized GDP Growth Accelerated to 1.9% in 3Q vs. 1.7% Expected, 3.8% in 2Q
- Japanese Yen Fell Slightly Against the US Dollar After GDP Data Release
- Market Reaction Muted as Traders Focus on Janet Yellen’s Senate Confirmation Hearing
USD/JPY rose slightly after Japan’s third-quarter GDP report. The economy grew 0.5%, better than the expected 0.4% increase but slower than the 0.9% gain in the second quarter. The slowdown came as consumer spending moderated and exports weakened.
USDJPY rebounded from earlier losses linked to the release of the text of tomorrow’s Senate confirmation speech from incoming Fed Chairman Janet Yellen. The central bank policymaker suggested that US jobs performance is “far short” of potential for the economy and must improve before Fed reduces stimulus, driving the US Dollar downward.
From here, the spotlight will be on Yellen’s question-and-answer session before the US Senate Banking Committee and its implications for the direction of Fed policy. Most notably, the markets will be interested to see if Yellen’s appointment as Chairman will delay the tapering of QE3 asset purchases, not expected to begin in March of next year. The confirmation hearing begins at 15:00 GMT.
Japanese GDP Data at a Glance
- GDP Annualized (3Q P): 1.9% vs. 1.7% Expected, from 3.8% in 2Q
- GDP (3Q P) (QoQ): 0.5% vs. 0.4% Expected, from 0.9% in 2Q
- Nominal GDP (QoQ) (3Q P): 0.4% vs. 0.4% Expected, from 1.1% in 2Q (revised up from 0.9%)
- GDP Deflator (YoY) (3Q P): -0.3% vs. -0.5% Expected, from -0.5% in 2Q
- Consumer Spending (QoQ) (3Q P): 0.1% vs. 0.2% Expected, from 0.6% in 2Q (revised down from 0.7%)
- Business Spending (QoQ) (3Q P): 0.2% vs. 1.0% Expected, from 1.1% in 2Q (revised down from 1.3%)
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USD/JPY 5-minute Chart: November 13, 2013
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-- Written by Cheng Li, DailyFX Research. Feedback can be sent to firstname.lastname@example.org