The Japanese Yen is in focus to kick off the trading week, with potentially high-impact economic data due out Monday morning. Japan will report preliminary figures for third-quarter gross domestic product. Analysts expect to see a contraction in growth for Q3 on both a quarterly and annualized basis, at -0.2% and -0.7%, respectively. That would be down from 0.5% q/q and 1.9% y/y in Q2.
The coming quarter’s weakness is thought to be induced by a sharp drop in consumer activity on the back of heightened Covid-19 restrictions put in place through the three months up to September. The Yen has conceded significant ground to the US Dollar during that time, which is hardly a surprise given the Greenback’s underlying fundamentals. That trend may continue, especially if this week’s GDP data comes in short of analysts’ expectations.
The coming quarter’s weakness is thought to be induced by a sharp drop in consumer activity on the back of heightened Covid-19 restrictions put in place through the three months up to September. The Yen has conceded significant ground to the US Dollar during that time, which is hardly a surprise given the Greenback’s underlying fundamentals. That trend may continue, especially if this week’s GDP data comes in short of analysts’ expectations.
