By Eric Andersen, THE TAKEAWAY : Japanese Annualized GDP Shrinks 0.7%, Current-Account Deficit Widens to ¥437.3 billion > Surprised by the Deficit Jump, Traders Move Away from Yen > USDJPY Jumps Data released by Japan’s Ministry ofFinance showed the nation’s current-account deficit expandedto a record low of 437.3 billion Yen in the month of January. The Economic andSocial Research Institute also published data that revealed a 0.7percent decline in the country’s gross domestic product(GDP), narrowly missing analysts’ expectation of a 0.6percent drop. Though the Japanese GDP fell slightly belowforecasted, analysts were mostly surprised by the large deficitincrease. Since markets expected only a 320 billion Yen deficit, traders rebalanced theirportfolios away from the Yen. The USDJPY peaked as high as 81.351following the data releases.
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