The Japanese economy has grown for three consecutive months. Although economist’s average forecast was 0.9%, the 0.6% increase from April to June adds to the positive sentiment of Japan’s QE policies.
Thought still positive, GDP figures are not quite meeting expectations. The second quarter GDP (Growth Domestic Product) figure translates into an annualized increase of 2.6% for Japan.
Mizuho International Director Dr Seijiro Takeshita stated growth was “back-loaded to the next quarter” and that GDP of 2.6% was “not a bad number at all”, according to BBC News.
10% Sales Tax?!
Another major topic on the table for Japan is their sales tax debate.
The USDJPY fell below the 96.00 level, but has climbed up to trade around the 96.50 level again. Could the drastic run of Yen weakness be over for now? Could be.
Until next time, for news updates and more fundamental analysis, you can follow the Winner’s Edge account. Follow Casey’s twitter account, Nathan’s twitter account, and Tim’s twitter account too for Forex analysis, and trade ideas!
For Nathan’s most recent Technical Analysis click here!
Winner’s Edge Trading, as seen on: