Japan Q4 GDP surges to +2.8% annualized (from +1.0% expected), deflator hits 2.8% – yen up

Japan Q4 GDP data pumps the yen higher

• Annualised GDP +2.8% (poll: +1.0%)
• Private consumption +0.1% qtr/qtr (poll: -0.3%)
• External demand contribution to GDP +0.7 pct point (poll: +0.4 pct pt)
• Capex +0.5% qtr/qtr (poll: +1.0%)
• Real GDP +0.7% qtr/qtr (Reuters poll: +0.3%)
• Exports +1.1% qtr/qtr
• Domestic demand contribution to GDP -0.1 pct point
• GDP deflator +2.8% yr/yr

These strong figures will contribute to the case for further, and sooner Bank of Japan interest rate hikes. JPY has responded by jumping higher. USD/JPY is circa 152.00 as I update

This article was written by Eamonn Sheridan at www.forexlive.com.