Japan’s GDP beats forecasts in Q1, lifts Nikkei

USD/JPY extended higher in Wednesday’s Asian session, from 120.58 to 120.98. A rising Nikkei following Japan’s better-than-expected economic growth led to a falling yen. Japan’s GDP expanded at a 2.4 percent annualized rate in the first quarter, much more than the forecast for 1.5 percent growth. The weaker yen lifted EUR/JPY off yesterday’s 133.95 low. In Asia it trade from 134.37 to 134.72, with the USD/JPY pair being supportive. Also, GBP/JPY was up, from 187.01 to 187.63, while AUD/JPY rose from 95.42 to 95.88. Details in the GDP report showed that there were some weak spots and that the recovery wasn’t that sustainable. So this pushed the yen lower.

EUR/USD was heavy, with a strong downside bias following yesterday’s comments from ECB policymaker Benoit Coeure on QE front-loading. EUR/USD traded between 1.1122-53. Focus will be on FOMC minutes later today. Diverging central bank policies will be in focus. A dovish Fed may help support euro.

EUR/GBP traded between 0.7175-87.
EUR/CHF slid from 1.0465 to 1.0436, off the New York session high of 1.0456.

GBP/USD consolidated after yesterday’s losses to 1.5447. In the Asian session cable traded between 1.5495-1.5524. Yesterday UK CPI disappointed and showed the economy was in deflation for the first time since 1960 at -0.1%.

USD/CHF was better bid on renewed USD strength. In Asia it saw a 0.9360-81 range.

AUD/USD opened in Asia at 0.7917, and see-sawed between 0.7897-0.7935. Weakness in iron ore prices are pressuring aussie though. AUD/NZD struggled between 1.0749-87, just above yesterday’s 1.0747 low.

NZD/USD opened in Asia at 0.7343, traded up from 0.7341 early low to 0.7370.

The post Japan’s GDP beats forecasts in Q1, lifts Nikkei appeared first on Forex Circles.

Source:: Japan’s GDP beats forecasts in Q1, lifts Nikkei

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