What US GDP could mean for markets
Key points
- Thursday's US GDP reading for Q2 is expected to be 2.1%
- Japanese GDP has not been above 2% since 2020
- USD/JPY approaches 30 year high near 150.00
Will the US join the global slowdown?
Thursday morning, the US will report final Q2 GDP growth - expected to be slightly higher than Q1 at 2.1%. Markets will pay closer attention to this reading than usual, since even a 0.2% deviation from forecast could be the difference between economic stability or economic decline.
Currently, US GDP remains much higher than other major economies. Expected global GDP growth for Q3 was only 0.3% according to the Bank of England. Euro-area specifically only increased 0.1% in Q2 and is expected to contract in Q3.
Asia experienced decline in growth much earlier than Europe. Since 2021, Japan's GDP has reported negative change four times and has not reported growth over 1.3%. This contrast in economic performance, among other factors, has translated to foreign exchange markets; USD/JPY is less than 200 pips away from reaching a 30-year high above 150.00.
How to trade USD/JPY
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on USD/JPY
Trading forex markets like USD/JPY requires an account with a forex provider like tastyfx. Many traders watch other major forex pairs like EUR/USD and GBP/USD as well for more potential opportunities. You can help develop your forex trading strategies using resources like tastyfx’s Learn Center.
Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
