Japan GDP Beats Forecast

The Japanese economy has recorded its largest economic expansion in more than two years as consumer spending and capital expenditure rose at the fastest pace in more than three years. Japan’s gross domestic product grew by one percent, thus expanding to an annualised 4.0 percent in April-June, the biggest increase since January-March 2015. The yen weakened in Asian trade today after the release of the better than expected GDP that led investors to back off from recent gains.

source:Reuters, CNBC

Asian equities were mostly higher in today’s early trade session after Japan GDP beats expectations in its second quarter. South Korea’s Kospi index gained 0.63 percent, the Shanghai Composite rose by 0.39 percent, while the Hang Seng index showed a solid growth of 1.16 percent and the ASX 200 added 0.72 percent. Elsewhere, Bitcoin surged to a new record high above the $4,000 level on Sunday on the foreign exchange market. Bitcoin edged higher by 14.06 percent to $3,909.3, after rising as high as $4,183.7 earlier.

Electric carmaker Tesla Motors expects to raise nearly $1.8 billion by selling bonds to private investors and the firm confirmed that the money will keep its balance sheet steady. The company plans to make 5,000 of its mass market Model 3 by the end of 2017 and eventually make about 10,000 of Model 3 per week. Disney is still competing with Netflix and announced that it would no longer “license content to Netflix,” after Netflix buys the Scottish comic book company behind Kingsman.

Technical Analysis

USD/JPY

USD/JPY

The Japanese yen traded weaker in Asian trade today after the release of Japan’s GDP data which was due at 23:50 UTC Sunday. The USD/JPY pair opened on a bullish candle at 00:00 UTC at the 109.258 level. It gained 0.16 percent as it traded at 109.363 yen at 02:00 UTC, pulled by momentary jumps. It is thus seen shifting more towards an uptrend in Monday’s session and it could surpass the 109.70 level.

EUR/JPY

EUR/JPY

Last Friday, the EUR/JPY pair traded below the 128.50 level in the morning trade, however, it slowly gained strength through the day and ended on a positive note at 129.054 yen at 20:00 UTC. The currency pair traded bullishly during the weekend and initiated today’s session positively, thus covering last week’s losses. It was last quoted on a bullish candle at 129.531 yen around 03:00 UTC, consider the FX/CFD tool for this one today.

USOIL

USOIL

After recording several pullbacks on Friday, the U.S. West Texas Intermediate shifted to a positive trend as it gained several bullish candles and ended its session at $48.81 a barrel by 23:00 UTC. In today’s session, crude oil fell slightly in Asia and the commodity eased 0.04 percent at $48.80 a barrel around 01:00 UTC. It is seen moving more towards a downtrend for today as it is trading below the Ichimoku Cloud indicator.

Things to watch on the market

Tip 1

Currency pairs such as the GBP/JPY, AUD/JPY and USD/JPY can be traded with the Classic Binary Options.

 

Tip 2

Asian indices and Bitcoin can be traded once these are made available on the platform as these assets could continue to rise further.

 

Tip 3

Consider trading on stocks of Tesla Motors and Disney.