The Yen dropped pretty much. Overview for 08.09.2021

USDJPY has been growing for the second trading session in a row; the “greenback” is sitting pretty.

The Japanese Yen didn’t pay attention to the statistics when trading against the USD and focused on some other impulse. The current quote for the instrument is 110.25.

Today morning, Japan published the final GDP estimate for the second quarter of 2021, which showed 0.5% q/q against the previous estimate of 0.3% q/q. That’s good news. The components of the report showed that the Private Consumption and Fixed Investment were 0.9% and 2.3% q/q against the expected readings of 0.8% and 1.7% q/q respectively.

On YoY, the Japanese economy added 7.6% in the second quarter. However, let’s not forget about the low-base effect in 2020.

It’s quite interesting that the Export added 2.8% q/q, while the Import expanded by 5.0% q/q. the readings are good and show a stable Japanese consumption – calm, consistent, without a fuss.

There are certain risks for the third quarter due to the coronavirus outbreak and spread of the delta strain but the statistics are yet to show them later.

The Japanese economy is recovering not as fast as other advanced countries due to the problems with the vaccination campaign, which is rather slow, breakdowns in the private sector, and continuous lockdowns.

The Yen didn’t pay much attention to the GDP statistics – the key driver for USDJPY right now is the “greenback”, which is getting stronger thanks to a technical impulse.