Yen Firms On Q1 GDP Revision & Better Trade Position

A raft of Japan data headlines have hit. Q1 GDP has been revised higher, the q/q annualized pace to 2.7% from 1.6% prior and 1.9% expected. An upside revision was expected, but this is firmer than forecasts. The upside mainly owes to firmer business spending (1.4%, versus 0.9% prior) and inventory contribution (0.4% from 0.1% prior). Consumption was revised down a touch to 0.5% from 0.6% prior.

• Other data showed for Apr trade figures also printed better than expected. The trade deficit was -¥113.1bn, versus -¥287.9bn forecast. The current account surplus was also slightly higher than expected. Japan's terms of trade have been on the improve, amid declining energy prices.
• Whether the data is enough to shift the BoJ view remains to be seen though, recent wages and real spending data have been weaker than expected. The latest BoJ survey by Bloomberg also suggests expectations are low for any changes at next week's policy meeting.
• Yen is a touch firmer post the data, the pair last around 139.90/95, -0.15% versus NY closing levels, although the USD is also softer against other majors.