By CountingPips.com
The Japanese economy grew in the second quarter of 2009 to lift the world’s second largest economy out of its deep recession. Japan’s GDP grew by 0.9 percent in the April through June quarter following a first quarter decline in GDP by a revised 3.1 percent according to data from the Economic and Social Research Institute. Japan’s economy had contracted for four 
consecutive quarters through the first quarter of 2009 and marked the deepest recession since World War II. Today’s data almost matched market forecasts that were expecting the GDP data to grow by 1.0 percent. On an annual basis, Japan’s GDP is 3.7 percent higher than the 2nd quarter of 2008 level following a revised annual decrease of 11.7 percent in 1st quarter.
Contributing to the growth in GDP was an increase in exports by 6.3 percent for the second quarter. Exports had fallen by 22.5 percent in the first quarter and by 13.6 percent in the fourth quarter of 2008. Japan’s government stimulus also played a role in the GDP gain as public investment increased by 8.1 percent in the quarter after an expansion of 2.6 percent in the previous period. Consumer spending, which accounts for approximately 50 to 60 percent of Japan’s economic activity, rose by 0.8 percent in the quarter after falling by 1.2 percent in the first quarter and by 0.7 percent in the fourth quarter of 2008.
Japanese Yen, US Dollar gain in Forex Trade.
Forex Trading so far today has seen US dollar and Japanese yen strength against most of the other major currencies. The yen has increased against the euro, British pound, Australian dollar, US dollar, Canadian dollar, New Zealand dollar and the Swiss franc as of 12:44pm ET. The US dollar, meanwhile, has advanced in trading today versus the euro, British pound, Swiss franc, Canadian dollar and New Zealand dollar while falling against the Japanese yen and trading virtually unchanged versus the Australian dollar.
USD/CAD Chart – The US Dollar gaining against the Canadian Dollar today in forex trading and trading over the 1.1000 level (1Hour Chart)
