Japan's Q3 GDP preliminary 5.0% QoQ vs. expected 4.4%, yen unchanged

Ross J Burland FXStreet

Japan's Q3 Gross Domestic Product preliminary result arrives at 5.0% QoQ vs. expected 4.4%, but the yen is unchanged.

Key notes

July-Sept private consumption rises for the first time in four quarters.
CAPEX falls for the second straight quarter.
Exports rose for the first time in three quarters.
GDP posts fastest expansion since comparable data became available in 1980.
GDP posts first expansion in four quarters.
Private consumption rises for first time in four quarters, marks the fastest pace of gain since comparable data became available in 1980.
Japan govt official: Consumption rose for dine-outs, leisure, automobiles.

The Japanese currency, the yen, was unchanged on the data as the improvement only partially offset the 7.9% contraction from the second quarter.

Description of Gross Domestic Product

The Gross Domestic Product released by the Cabinet Office shows the monetary value of all the goods, services and structures produced in Japan within a given period of time.

GDP is a gross measure of market activity because it indicates the pace at which the Japanese economy is growing or decreasing.

A high reading or a better than expected number is seen as positive for the JPY, while a low reading is negative.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD flat lines near 1.1800 as traders brace for US PPI release

The EUR/USD pair trades on a flat note near 1.1800 during the early Asian session on Friday. The pair steadies as softer Eurozone inflation offsets US tariff uncertainties. Traders await the preliminary reading of the Consumer Price Index from Germany on Friday for more clues about the pace of future policy easing. On the US front, the Producer Price Index report will be released.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold remains below $5,200 despite tariff jitters and geopolitical risks

Gold is seen consolidating in a range below the $5,200 mark during the Asian session on Friday amid mixed cues. Trade jitters, along with the risk of a potential US-Iran war, act as a tailwind for the safe-haven bullion. Meanwhile, the Fed's hawkish outlook keeps the US Dollar close to the monthly high and caps the non-yielding yellow metal. Nevertheless, the commodity remains on track to register gains for the fourth straight week, though the fundamental backdrop warrants some caution for bullish traders.