When is Japanese Q2 preliminary GDP data and how could it affect USD/JPY?

Anil Panchal FXStreet

Japan’s Finance Ministry is up for releasing preliminary reading of second quarter (Q2) 2019 gross domestic product (GDP) figures at 23:50 GMT on Friday.

Market consensus suggests 0.1% figure of the growth signal versus +0.6% previous readout on a quarterly basis. Further, the yearly format indicates 0.4% growth of the headline economic data compared to +0.1% prior. Furthermore, GDP annualized may weaken to 0.4% from +2.2% earlier.

How could Japan’s preliminary GDP affect USD/JPY?

With the recent data out of the Asian economy not being very good, coupled with the Bank of Japan’s (BOJ) sustained support for ultra lose monetary policy, a weak reading might not refrain from trimming the Japanese Yen’s (JPY) recent strength. However, on-going safe-haven demand amid trade/political problems can keep the JPY strong.

In a case where GDP disappoints, the USD/JPY pair may bounce back towards June month low near 106.78, with mid-July low around 107.20 being following resistance to watch, whereas an upbeat print could add strength into the latest safe-haven buying of the JPY and may drag USD/JPY towards January low of 104.76 with 105.50 being immediate support.

Key Notes

USD/JPY technical analysis: Greenback firmer above 106.00 as Wall Street gains momentum

USD/JPY Analysis: moves lower despite higher US yields

About the Japanese Q2 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.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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