When is Japanese Q1 preliminary GDP data and how could it affect USD/JPY?
|Japan’s Finance Ministry is up for releasing preliminary reading of first quarter (Q1) 2019 gross domestic product (GDP) figures at 23:50 GMT on Sunday (i.e. Monday morning in Asia).
Market consensus suggests 0.0% figure of the growth signal versus +0.5% previous readout (revised) on a quarterly basis. However, the yearly format indicates a rise of +0.3% into the headline economic data compared to -0.3% prior. Furthermore, GDP annualized may drop to -0.2% from +1.9% earlier.
How could Japan’s preliminary GDP affect USD/JPY?
With the majority of the Bank of Japan (BOJ) officials in favor of the central bank’s easy monetary policy, chances are less that a weak GDP reading could change the sentiment at BOJ. However, its negative impact on the Japanese Yen (JPY) can’t be denied.
Given the elections for the upper house in July and decision on whether to raise consumption tax or not lay ahead, today’s GDP data gains additional importance to drive the USD/JPY pair moves. However, on-going risk sentiment shouldn’t be undermined while forecasting the quote’s near-term momentum.
In a case where GDP disappoints, the USD/JPY pair may aim for 100-day simple moving average (SMA) level of 110.50 and then to 50-day SMA figure of 111.10 during further increase.
On the contrary, an upbeat print could add strength into the latest safe-haven buying of the JPY and may drag USD/JPY towards revisiting 109.70 and 109.00 rest-points.
Key Notes
USD/JPY analysis: corrective advance could extend up to 110.50
USD/JPY technical analysis: Buyers challenging the 110.00 figure
About the Japanese Q1 preliminary GDP
The Gross Domestic Product released by the Cabinet Office shows the monetary value of all the goods, services and structures produced in Japan within a given period of time. GDP is a gross measure of market activity because it indicates the pace at which the Japanese economy is growing or decreasing. A high reading or a better than expected number is seen as positive for the JPY, while a low reading is negative.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.