Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💰 With a 129% YTD gain in the bag, these are our AI’s top global picks for March
Read now
Yuan’s Slide Halted But Japan’s Economy Contracts In Q2
www.investing.com/analysis/yuan%E2%80%99s-slide-halted-but-japan%E2%80%99s-economy-contracts-in-q2-261854
Yuan’s Slide Halted But Japan’s Economy Contracts In Q2
By XM Group (Trading Point ) | Aug 17, 2015 03:52AM ET Japan’s economy contracted by less than expected in the second quarter, shrinking by 0.4% quarter-on-quarter, against forecasts of a 0.5% contraction. This compares with growth of 1% in the first quarter and raises pressure on the Bank of Japan to expand its quantitative easing program amid the absence of any inflationary pressures. The drop in output in the second quarter came from weaker exports and a 0.4% fall in consumer spending.
The yen was little impacted by the GDP data as markets will now be shifting their attention to third quarter performance, which is likely to come into bigger focus for the Bank of Japan in adjusting their economic and inflation outlooks.
The dollar advanced against the yen in Asian session, rising to 124.47 yen, but fell against the euro and the pound. The euro briefly jumped above the 1.11 level but dropped back to 1.1076 dollars in late Asian trading. The pound was firmer against the dollar after Bank of England MPC member Kristin Forbes said that interest rates need to rise before inflation hits the 2% target. Sterling jumped to 1.5687 dollars before easing to 1.5663 dollars, while the euro fell to 0.7071 pounds.
Asian currencies stabilized after China set the yuan’s midpoint slightly higher at 6.3969 per dollar on Monday, versus Friday’s 6.3975 per dollar. Last week’s surprise depreciation of the yuan caused large losses in Asian stocks and emerging market currencies took a hit with the Malaysian ringgit falling to 17-year lows. The Turkish lira and Brazilian real have also come under sharp pressure from the yuan’s move on top of existing domestic economic and political troubles.
The Australian dollar was steady against the greenback on Monday as it held on to its gains after falling to a new 6-year low of 0.7214 last week on the yuan’s devaluation. The aussie was last trading at 0.7370 against the dollar but the kiwi was only modestly above its 6-year lows, standing at 0.6541 in late Asian trading.
Oil prices were struggling at the start of the week’s trading as concern’s over weak demand and oversupply continued to weigh on prices. WTI crude futures fell to 6-year lows at $41.93, while Brent crude was at $48.65 in late Asian session.
The rest of the day is likely to be very quiet with the only major release coming from the US. The Empire State Manufacturing index is expected to show improving sentiment in August.
Related Articles
US Dollar Can Extend Much Lower if Stocks Stabilize
By Gregor Horvat - Mar 06, 2025
US Dollar Index is experiencing a very strong decline, a move we have been warning about for weeks. Since the start of the year, we have discussed potential dollar weakness, which...
EUR/USD: Germany’s Fiscal Bazooka Fuels Rally, But Pullback Looms...
By Kelvin Wong - Mar 06, 2025
An aggressive fiscal spending proposal by Germany has attracted bullish animal spirits into EUR/USD. A significant rally in the longer-end German Bund yields is likely to alter...
USD/JPY: Yield Signals Clash With Heavy Price Action Ahead of Nonfarm...
By David Scutt - Mar 06, 2025
USD/JPY trades heavy despite widening yield differentials Non-farm payrolls loom large as traders focus on the unemployment rate. Mixed signals in data could see choppy trade,...
Yuan’s Slide Halted But Japan’s Economy Contracts In Q2
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.