Currency News: Japanese Yen Fell Due to the Disappointing GDP

Currency News

Currency News

The US dollar-Japanese yen currency pair has an inverse relation to the Japanese yen. It rose nearly 0.8% on November 16, 2015. The currency pair reached a high of 123.3 before closing for the day at 123.2. The GDP 3rd quarter was released.

As the information was published we got to know that the country fell 0.2%.It fell despite the ultra-easing policy adopted by the BoJ. The domestic demand fell by 0.3%. The biggest impact was the private non-residential investment which fell 1.3%.The public investment fell by 0.3%. The year over year GDP fell by 0.8% agains the expectation which was -0.2%. This was the second consecutive quarter with a contraction in the Japanese economy.

The fall in the yen correlated with the currency-based Guggenheim CurrencyShares Japanese Yen ETF. It was trading 0.44% lower at the close of trade on November 16, 2015. In contrast, the iShares MSCI Japan  rose by 0.97%.

Japanese ADRs (American depositary receipts) on US exchanges were trading on a mixed note. Leisure goods maker Sony  rose 0.48%. In the banking arena, Mitsubishi UFJ Financial Group fell by 0.59%, while Sumitomo Mitsui Financial Group rose by 1.1%.

US numbers on Friday were a mix. Retail Sales and PPI both were below expectations. Retail Sales came in at 0.1%, while Core Retail Sales was only a small fraction better, with a small gain of 0.2%. PPI came in at -0.4%, as the manufacturing inflation indicator posted a second straight decline. There was better news on the consumer front, as U0M Consumer Sentiment improved to 93.1 points, beating the estimate of 91.3 points.



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