Japan falls into technical recession – TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Prashant Newnaha, Rates Strategist at TD Securities, notes that the Japanese Q3 GDP dropped 0.2%/qtr, below the –0.1%/qtr decline the market had pencilled in, the 2nd straight contraction, in other words Japan is in a technical recession.

    Key Quotes

    “Q2 was revised up slightly (from –0.3% to –0.2%) and consumer spending rose 0.5%, the negative was the sharper drop in business investment, -1.3%/qtr vs –0.5% f/c.”

    “Today’s data lifts the risk that the current fiscal year GDP will miss the 1.2% target projected by the BoJ at its meeting at the end of last month. A widening in the output gap which should see inflation pressures ease does lift the risk that the BoJ could inject monetary stimulus next year.”
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