USD/JPY pared losses on Thursday, climbing back above the 155.00 mark after falling to 153.60 on Wednesday. Japan’s economic growth data contracted more than expected, and the prospect of a rate cut by the Federal Reserve (FED) struggled under the weight of cautious comments from Fed officials.
Japan’s gross domestic product (GDP) contracted more than expected in the first quarter, with the quarterly rate falling to -0.5%, compared with a flat 0.0% in the previous quarter. It was revised downward after the initial value was recorded at 0.1%. The market expected contraction, with the expected value -0.4%. Japan’s gross domestic product (GDP) also shrank at an annual rate, recording a decline of -2.0% in the year to the first quarter, lower than the -1.5% expected and lower than the previous value of 0.0% (down from 0.4% ).
