Japanese Yen Tumbles Ahead of Final Q1 Japanese GDP Reading

The Japanese yen was the weakest of the majors on Wednesday, tumbling more than 1 percent against the ultra-strong Australian dollar and British pound and falling 0.77 percent versus the US dollar. Most of the losses came during the Asian trading session though, as losses in the US equity markets subsequently pushed the Japanese yen higher. Tonight at 19:50 ET, Japan’s Cabinet Office will release their final growth readings, which should confirm that the economy contracted for the fourth straight quarter in Q1 2009. However, this reading is anticipated to be revised higher once again, this time to -14.9 percent from -15.2 percent. While this would still be the worst result on record, the revision has potential to provide a boost to the Japanese yen, which is what we saw with the release of the preliminary reading on May 19. On the other hand, a revision to the downside could weigh heavily on the low-yielding currency.