Monday, November 17, 2014

Recession time for Japan

The third quarter preliminary GDP in Japan shrank to -0.4%. The additional stimulus by expanding the monetary base so far has not managed to help the Japanese economy.

Prime Minister Abe is said to delay a second sales tax hike with the uninspiring GDP results.

Traders with yen exposure in their portfolio would have made fat unrealised gains if they were long on USD/JPY and GBP/JPY. Things do not look good for Japan at the moment and a short would be suicidal for a trader.

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