Japan's Economy Contracts, Rates Likely On Hold

[DailyFx]

Fundamental Headlines



- USDJPY - Growth contracts more than expected in the world?s largest economy. For the second quarter, the economy contracted by -1.2 percent. The figure dampens any hope of a rate increase by the Bank of Japan.
- GBPUSD - UK producer prices rise less than expected on both perspectives, input and output. The market turns to wage costs later in the week in determining inflationary pressures.
- EURUSD - European economic growth remains supported as per French manufacturing and industrial production for the month.
- Yen Carry Pairs slightly lower as risk appetite pares back on US growth slowdown. Equity markets move lower in the US and Europe as bond demand increases.
- Attention will be turned to Fed speakers later today. Schedule includes commentary from Fisher, Yellen and Lockhart. All three are likely expected to comment on current conditions.







Written by: Richard Lee, Currency Strategist