The Yen is retreating at the beginning of the week. Overview for 13.02.2017

At the beginning of a new five-day period, the USD/JPY pair is trading to the upside after Japan published some weak statistics.

The Japanese Yen is retreating against the USD on Monday. The current quote for the instrument is 113.51.

This morning, Japan published the Preliminary GDP over the fourth quarter of 2016. According to the report, the country’s economy expanded only by 0.2% q/q after adding 0.3% q/q in the previous quarter (expectations were the same). On YoY, the indicator added 1.0%, although it was expected to increase by 1.1%.

The data in the report components is rather mixed and this was the reason for the Yen to retreat. So, the nominal increase in the economy in the fourth quarter is estimated at 0.3% q/q against 0.2% q/q in the third quarter. The Price Index lost 0.1%, which is better than expected. This indicator shows the inflation potential.

At the same time, the GDP reading over the third quarter was revised upwards, from 1.3% y/y to 1.4% y/y. As a result, decrease in the momentum at the end of the year turned out to be even more obvious.

The details of the indicator show why it is falling. Mostly, this is due to the Private Consumption, which stayed at zero in the fourth quarter after adding 0.3% in the previous one. The Capital Expenditures started increasing quickly at the end of the year, but it appears that the indicator wasn’t able to beat all the negative things.

RoboForex Analytical Department