- The Japanese Yen (JPY) rose on Friday and across the week
- Japanese Q2 GDP rose 0.3% QoQ
- The US Dollar (USD) fell against major peers
- US retail sales rose in July, but consumer sentiment fell in August
The US dollar Japanese yen (USD/JPY) exchange rate fell on Friday, giving back Thursday’s gains. The pair rose 0.25% in the previous session, settling on Thursday at 147.76. USD/JPY settled -0.38% lower at 147.20 and traded in a range of 146.74 to 147.90. The pair fell 0.38% across the week.
The Japanese yen rose on Friday. The data show the Japanese economy grew by more than expected in the second quarter. Japanese Q2 GDP rose to 0.3% quarter on quarter in the April to June period. This was up from 0.1% in the first quarter of the year and ahead of expectations of 0.1%. On an annual basis, GDP rose 1% up from 0.6% and ahead of expectations of 0.4% growth.
Stronger exports drove the growth. The data came as the US and Japan agreed a trade deal on July 23. The deal sees the US apply 15% tariffs to Japanese imports.
The US dollar fell across the board on Friday. The US dollar index, which measures the USD against a basket of peers, fell 0.41% to 97.85, and fell 0.33% across the week.
The USD fell on Friday after data showed that US retail sales rose in July, but consumer confidence data showed signs of weakness.
US retail sales rose 0.5% month on month in July after an upwardly revised 0.9% increase in June. Nine out of 13 categories posted increases, a sign that consumer spending saw a better start in the second half of the year after uncertainty surrounding Trump’s policies saw consumers hold off spending in earlier months.
However, a report later on Friday showed that US consumer sentiment unexpectedly fell in August, which raises concerns over the durability of the rebound in retail sales. The weaker consumer sentiment also comes as the latest US non-farm payroll report showed signs of weakening.
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