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 of Finance showed the nation’s current-account deficit expanded to a record low of 437.3 billion Yen in the month of January. The Economic and Social Research Institute also published data that revealed a 0.7 percent decline in the country’s gross domestic product (GDP), narrowly missing analysts’ expectation of a 0.6 percent drop. Though the Japanese GDP fell slightly below forecasted, analysts were mostly surprised by the large deficit increase. Since markets expected only a 320 billion Yen deficit, traders rebalanced their portfolios away from the Yen. The USDJPY peaked as high as 81.351 following the data releases.
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.