Japanese economic growth likely to have decelerated in Q3

Japan’s economic growth in the second quarter had surprised markets with a comparatively stronger performance. The economy had grown 0.6 percent and 2.5 percent on an annualized basis. This was the most robust performance by the Japan’s economy since the first quarter of 2015, when it had expanded at an annualized rate of 4.5 percent.

At present, markets are anticipating the economy to have decelerated slightly in the third quarter, while market consensus estimate is at an annualized rate of 1.5 percent. According to a Wells Fargo report, Japan’s economy is expected to have expanded at an annualized rate of 1.6 percent in the third quarter, as some payback is likely from the solid performance in the second quarter.

Any improvement in the third quarter data from the second quarter will largely aid the global economic cause for a continuous improvement in economic conditions. But this is unlikely, added Wells Fargo.

At 14:00 GMT the FxWirePro's Hourly Strength Index of Japanese Yen was neutral at 10.2255, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 15.8975. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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