Japanese economic growth likely to have rebounded in Q2 2018

The Japanese economic growth data for second quarter is set to be released tomorrow. According to a DBS Bank research report, the economy is expected to have risen 1.6 percent in the June quarter, a moderate recovery compared to a contraction of 0.6 percent in the first quarter. Domestic demand seems to have rebounded back, after being disrupted by the cold weather at the beginning of this year.

In the meantime, exports have continued rise at a stable rate in the second quarter. However, the average growth in the first half of this year would have stayed relative soft at 0.5 percent. Uncertainties surrounding the outlook of the second half of the year are now on the rise because of the spreading of U.S. trade protectionism and the rise in emerging market volatility.

“Risks to our full-year growth forecast of 1.1 percent are skewed to the downside”, added DBS Bank.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Japanese Yen was highly bullish at 106.283, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -41.4725. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex