Release Explanation: It measures the monetary value of all goods and services produced within a Country’s borders in a specific time period. GDP is calculated on an annual basis, is the broadest measure of activity, and the primary gauge of each economy’s overall health. It includes all Company and Personal consumption, government outlays, investments, and exports fewer imports, that occur within a defined territory. A strong annual GDP outlook will lead to strong investment in an economy especially from overseas. A weak annual GDP outlook will usually lead to a slowdown in the economic business cycle. The yearly forecast is as important as the actual release number.

Trade Desk Thoughts: The Japanese economy has shrunk by an annualized 12.1 percent pace during the last quarter due to lowered business spending and a loss of exports as the global recession takes hold. In the three months to end December 31st the Gross Domestic Product (GDP) contracted less than the 12.7 percent which was reported by the Cabinet Office today.

Forex Technical Reaction: The Japanese yen has strengthened shortly after this release was announced, falling to the previous day’s low of 97.05.