Yen Strengthens Very Slightly to New Session High Following Marginally Better than Expected Japanese Q4 GDP Data

Japan’s economy expanded at a slightly faster rate than economists expected in Q4, according to preliminary data released by the country’s government on Monday. The island nation’s GDP rose by 1.1% compared to the consensus call for a 0.9% gain. The expansion followed the flat rate in the previous quarter, which had been originally reported as a 0.3% rise. Meanwhile, annualized, Japanese preliminary Q4 GDP increased 4.6% versus expectations for a 3.5% growth rate and following the flat reading the prior quarter. Following the marginally better-than-expected data, USD/JPY weakened by a slight 0.05 yen to reach 89.98, which, despite the restraint of the move, was a new intraday low for the pair. However, USD/JPY quickly recovered and indeed went on to trade at a higher level than prior to the release. The pair recently traded at 90.08, a rate close to USD/JPY’s session high of 90.13.