The Japanese yen dove the most in about seven days on Monday as a consequence of economic data indicating the Pacific Rim nation did not develop as much as forecast by economists and analysts during the second quarter of this year, Bloomberg reports.
The monetary unit dropped in value against all of its major counterparts after gross domestic data information indicated growth pushed to 2.6 percent from April through June, according to Reuters.
"Growth above 2 percent is still considered high, so it wouldn't lead to a complete postponement of the sales tax hike. But the government could make tax hikes more incremental, without delaying the timing," chief economist Takeshi Minami with Norinchukin Research Institute told Reuters on Monday.
Reuters reports Japan notched a third consecutive quarter of growth during the second quarter but the government's debt burned has exceeded 1,000 trillion yen. That is roughly equal to $10.4 trillion in U.S. currency.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.