Research Team at TDS, notes that the Japanese Q4 GDP shrank an annualized -1.4% while the market consensus was of -0.8%. Key Quotes “With weaker private consumption a driver, and considering the strong yen rally could dampen capital spending and exports over the coming months. The positive was the upward revision for Q3 GDP to 1.3% from 1%. CNY: The trade surplus for January widened to a record US$63.6b. Imports were terrible in both price and volume terms, down nearly 19%/yr (mkt was at –3.6%/yr). Exports were also weaker than market expectations, -11.2%/yr (mkt at –1.8%). We will need to wait till the March report for a clean read, but exports to the US and Europe dropped. Also imports of iron ore dropped, but there is little read through given steel plants were winding down production into Chinese New Year.” For more information, read our latest forex news.