Published: Fri, 29 May 2009 14:48:00 +0200

Forex: USD/JPY reacts down after the US GDP bad data

FXstreet.com (Barcelona) - USD/JPY has falling 35 pips from 96.00 to test intra-day low at 1.9565 in the first minutes after the worst than expected 1Q US GDP data. Currently the pair is trading around 95.65/75, posting 1.00% daily losses from opening price at 96.70.

Gross Domestic Product Annualized has been revised to a 5.7% drop in the First Quarter of 2009 from the -6.1% posted previously. Market expectations was 5.5% decreases between January and March.

Nick Nasad, Analyst at CMS, affirms in his US GDP FXstreet.com Live Coverage that US 1Q GDP data doesn't change the market view: "I think most forecasts had a figure around -5.7%, so it does not come as a surprise (meaning its priced in). the data doesnt change teh underlying conditions that have been pushing around the markets the past couple fo weeks, and that is the feeling that the worst of the recession is over, the financial sectors around the world have stabilized, and that with record low interest rates around the world and fiscal stimulus plans abounding, that we will start to see a return to growth in economies in the 3rd quarter. The US GDP data from the 1st quarter is now almost old news.. that is why there is not much of a reaction. The data doesnt change the narrative."

By Fxstreet.com

Real-Time Economic Calendar - Currencies at a Glance - Pip Rebate Program

© 2009 “FXstreet.com. The Forex Market” All Rights Reserved. Every effort is made to provide accurate and complete information. However, with the thousands of documents available, often uploaded within short deadlines, we cannot guarantee that there will be no errors. Any republication or redistribution of FXstreet.com content is expressly prohibited without the prior written consent of FXstreet.com.