Forex Market Update: U.S. Dollar, Japanese Yen Bounce Back Against High-Yielding Curr

The JPY gained ground during the Asian session, partly aided by the GDP number which though poor at -4% for Q1, was better than expectations of -4.2%. JPY gains on the back of the data, and further EUR/JPY selling from Japanese life companies and model funds helped the push USD/JPY lower to 95.50 from opening levels around 96.22. The USD also managed to gain slight ground in Asia due to the JPY cross selling that emerged on JPY strength with AUD, NZD and EUR all coming under pressure. EUR/USD eased from Tokyo opening levels of 1.3650 to fall to 1.3584 both on the back of EUR/JPY sales but also some pressure on EUR/GBP as well. Asian stock markets were mixed with the Nikkei up slightly on the GDP result but China pressured after the World Bank warned that China recovery hopes were premature. July NYMEX crude futures remained over $60 despite increased warnings about rising oil supplies and inventory.