FXStreet (Edinburgh) – Analyst Tom Wayne at Westpac suggested the possibility that the Japanese GDP could disappoint markets in the second quarter.

Key Quotes

“The Bank of Japan and the Ministry of Finance each conduct comprehensive quarterly surveys of Japanese businesses”.

“The MOF’s BSI surveys 16000 corporations of varying sizes, while the BoJ’s Tankan covers around 1000”.

“We use the detailed responses to forecast quarterly GDP growth… forecasts based on responses to the BSI are a better fit than those based on Tankan, though both surveys tend to point in the same direction”.

“There was some divergence between BSI and Tankan respondents in Q2, with BSI reporting a decline in fixed investment over the quarter while Tankan shows an unexpectedly large increase (4.3 vs -5 in Q1)”.

“Despite this difference, both models highlight the downside risk for Q2 GDP growth, with Tankan and BSI forecasting 0.3% and 3% contractions respectively”.

Analyst Tom Wayne at Westpac suggested the possibility that the Japanese GDP could disappoint markets in the second quarter…

(Market News Provided by FXstreet)

By FXOpen