In trading following U.S. data releases, USD/JPY fell to ¥157.90 and later rebounded; the reports showed third-quarter GDP growth of 3.4% and nearly flat September real consumer spending.
OANDA Securities reported the exchange rate at about ¥158.03 shortly before the releases, ¥157.90 soon afterward and about ¥157.96 roughly 15 minutes later. The firm described the immediate market reaction as limited, with the dollar still near ¥158. The move followed recent yen weakness against the dollar as investors assessed central-bank decisions, a theme in earlier EconoTimes coverage.
The U.S. Bureau of Economic Analysis (BEA) said real gross domestic product grew at a 3.4% annual rate in the third quarter, compared with 2.2% in the second quarter. The advance estimate equates to a 0.8% quarterly rate. Stronger investment, consumer spending and government spending contributed to growth; exports fell while imports rose.
In September, current-dollar personal income increased 0.2% from August, after a 0.3% rise the previous month. Current-dollar personal consumption expenditures (PCE) rose 0.5%, following a 0.9% increase in August. Real PCE was flat at 0.0%, rounded; the BEA’s release said it increased $2.6 billion, or less than 0.1%.
Inflation moved higher. The PCE price index rose 0.5% from August and 3.6% from a year earlier, up from 3.4% annual inflation in August. Excluding food and energy, the index increased 0.3% for the month and 3.1% over the year.
On Oct. 28, the Federal Open Market Committee held its target range at 3.75% to 4% in a 10-2 vote. The two dissenters favored a quarter-point increase.
The Bank of Japan’s calendar lists its monetary policy statement and the October outlook’s “Bank’s View” for Oct. 30, with the release time undecided. The full outlook is scheduled for Nov. 2 at midnight EST (14:00 JST). The BEA has scheduled its next GDP estimate and October personal income report for Nov. 25 at 8:30 a.m. EST.
