USD/JPY Edges Higher After Surprise Contraction In Japanese GDP, Uptick In U.S. Tsy Yields
Spot USD/JPY has added ~50 pips thus far amid a further uptick in U.S. Tsy yields, with the two sides of the pair sitting at the opposite ends of the G10 pile, with most major crosses rangebound. The BBDXY index has inched higher as participants continue to weigh recent rounds of Fedspeak.
- Japan's economy shrank 1.2% Y/Y in Q3 versus expectations of a 1.2% growth, according to preliminary data from the Cabinet Office, as the historic yen sell-off sent import costs soaring. The yen was unfazed around the time of the release, but weakened shortly thereafter.
- All eyes are on China's September economic activity indicators. Spot USD/CNH oscillates near neutral levels after the PBOC fixed its USD/CNY reference rate just a handful of pips below the expected level.
- There's a wealth of economic data coming up after Asia hours, including flash EZ GDP, German ZEW Survey, UK unemployment, Swedish CPI, as well as U.S. Empire M'fing & PPI. Comments are due from Fed's Barr, Cook & Harker, ECB's Villeroy & Elderson, as well as Riksbank's Floden.