Japan's Q3 GDP preliminary 5.0% QoQ vs. expected 4.4%, yen unchanged

Ross J Burland FXStreet

Japan's Q3 Gross Domestic Product preliminary result arrives at 5.0% QoQ vs. expected 4.4%, but the yen is unchanged.

Key notes

July-Sept private consumption rises for the first time in four quarters.
CAPEX falls for the second straight quarter.
Exports rose for the first time in three quarters.
GDP posts fastest expansion since comparable data became available in 1980.
GDP posts first expansion in four quarters.
Private consumption rises for first time in four quarters, marks the fastest pace of gain since comparable data became available in 1980.
Japan govt official: Consumption rose for dine-outs, leisure, automobiles.

The Japanese currency, the yen, was unchanged on the data as the improvement only partially offset the 7.9% contraction from the second quarter.

Description of Gross Domestic Product

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD softens to near 1.1400 as ECB tightening bets fade

The EUR/USD pair trades with mild losses around 1.1415 during the early Asian session on Tuesday. The Euro softens against the US Dollar as traders reduce their bets on the European Central Bank rate hikes this year.

Gold tumbles 1.5% to fresh seven-month lows below $3,950

Gold remains under strong selling pressure for the second straight day early Tuesday, refreshing seven-month lows below $3,950. Renewed US-Iran hostilities over the weekend cast doubts over the sustainability of the peace deal. This, along with elevated expectations for Fed rate hikes, offers some support to the US Dollar and undermines the bullion.

Bitcoin stalls at $60K as buyer conviction fades, Strategy authorizes BTC sales

Bitcoin is trading around the $60,000 level on Monday after a sharp decline last week. With the top crypto struggling to recover, analysts suggest the market remains firmly in defensive territory as investors await stronger signs of demand.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.