Back
15 May 2014
JPY remains on a firm tone - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, underline the good performance of the JPY on Thursday.
Key quotes
"The yen has remained firmer in the Asian trading session following the release overnight of the stronger than expected Japanese GDP report for Q1. The report revealed that real GDP growth expanded by an annualized rate of 5.9% in Q1 following a modest downward revision to growth of just 0.3% in Q4 2013."
"The implementation of the sales tax hike in April prompted both households and businesses to bring forward demand into Q1 temporarily boosting growth. The main upside surprise in the report was the reported strength of capital investment which accelerated even more strongly than expected by 4.9% in Q1 and also followed an upwardly revised expansion of 1.4% in Q4 2013."
"It was the fourth consecutive quarter that capital investment has expanded. Personal consumption growth accelerated in line with expectations expanding by 2.1% in Q1 which was almost by the same rate as in Q1 1997 prior to the last sales tax hike. Economic growth is now expected to contract in Q2 reflecting both payback for the bringing forward of demand into Q1 and from the direct negative impact of the sales tax hike on consumption."
Key quotes
"The yen has remained firmer in the Asian trading session following the release overnight of the stronger than expected Japanese GDP report for Q1. The report revealed that real GDP growth expanded by an annualized rate of 5.9% in Q1 following a modest downward revision to growth of just 0.3% in Q4 2013."
"The implementation of the sales tax hike in April prompted both households and businesses to bring forward demand into Q1 temporarily boosting growth. The main upside surprise in the report was the reported strength of capital investment which accelerated even more strongly than expected by 4.9% in Q1 and also followed an upwardly revised expansion of 1.4% in Q4 2013."
"It was the fourth consecutive quarter that capital investment has expanded. Personal consumption growth accelerated in line with expectations expanding by 2.1% in Q1 which was almost by the same rate as in Q1 1997 prior to the last sales tax hike. Economic growth is now expected to contract in Q2 reflecting both payback for the bringing forward of demand into Q1 and from the direct negative impact of the sales tax hike on consumption."