Gross Domestic Product figures for the first quarter of the Year have been announced in Japan. The announced rate of the Gross Domestic Product on a quarterly basis showed a 0.9% decline which was worse than the 0.5% the market speculated and the 0.3% decline the previous quarter showed. On an annual basis the yearly rate for the 1st quarter showed a 3.7% decline which was noticeably lower than the 1.9% decline market speculation and the 1.3% decline of last year’s quarter. Following the announcement some volatility was generated in the USDJPY pair. The USDJPY pair, prior to the news had recorded a 2-day high at 81.80 and during the last few hours it found resistance around that high. It is of great interest to see when a new high will be recorded following this bearish news for JPY and include the up rise.
The Gross Domestic Product shows the monetary value of goods, services and structures that are produced in Japan between a given time period of. It is a general measure of market activity as it shows economic growth pace and therefore a high value is usually associated with hawkish currency behavior.