Japanese Yen Slips on GDP Data; Chinese Yuan Rises By Investing.com


© Reuters.

By Alex Ho

Investing.com – The yen traded slightly lower on Monday in Asia after Japan reported a much deeper economic contraction than expected.

The pair inched up 0.1% 109.81 after the Cabinet Office reported today that Japan’s in the December quarter fell an annualized 6.3%, faster than the expected 3.7% contraction.

The drop, which followed a revised 0.5% gain in July-September, was the biggest since a 7.4% decline marked in April-June 2014.

Meanwhile, the pair fell 0.2% to 6.9760

On Sunday, China reported 1,933 new confirmed cases of the coronavirus, down from 2,009 the previous day, and 100 new deaths, down one from 142 the previous day.

The economic impact of the epidemic is still unknown. Some analysts have estimated that China’s annual growth could slow to between 4% and 5%, down from the 6% annual growth estimated by the government.

The pair gained 0.2% to 0.6727.

The pair was near flat at 1.3043. The U.K. will release a slew of data this week, including the December jobs report and the latest inflation figures.

Reports on retail sales, manufacturing and services PMI data for February are also due.

The pair traded 0.1% higher to 1.0838. The euro fell to its lowest level against the U.S. dollar since April 2017 last Friday after Germany, the eurozone’s largest economy, reported that GDP growth stagnated at the end of 2019. The European Central Bank is scheduled to publish the minutes of its January meeting on Thursday.

The inched up 0.1% to 99.037. Financial markets on stateside will be closed on Monday for Presidents Day.

The Federal Reserve is due to release the minutes of its January meeting on Wednesday. There are also several Fed policymakers scheduled to speak during the week, including Minneapolis Fed President Neel Kashkari, Dallas Fed head Robert Kaplan and Fed Governors Lael Brainard and Richard Clarida.

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