Japanese Preliminary GDP Actual -4.0%, Expected -4.2%, Previous -3.2%
Release Explanation: The Gross Domestic Product is a comprehensive measure of a Japan’s overall production and consumption of goods and services. GDP serves as one of the primary measures of overall economic well-being. GDP announcements generally conform to expectations as the number comes out after most Japanese production figures that lead to overall GDP have already been released.
Trade Desk Thoughts: The Japanese economy contracted by a record last quarter as exports continued to shrink. Gross Domestic Product (GDP) contracted at an annual 15.2% in the three months ended March 31. Despite the poor -4.0% quarterly read, economists had actually predicted a worse 4.2% contraction for the quarter. Meanwhile, the fourth quarter was revised to -3.8% from -3.3%.
Forex Technical Reaction: The Japanese yen has strengthened since the release as the number came in better than expected which is leading to speculation that the worst of the economic downturn may be over. Since the Asian session began, the yen has traded in a 30 pip range and is currently flat.