The\u00a0Japanese\u00a0economy contracted 0.4% over the quarter in the third quarter (Q3) of 2025, the preliminary reading released by Japan\u2019s\u00a0Cabinet Office\u00a0showed on Monday. This reading came in above the market expectation of a 0.6% decline and the previous reading of\u00a0a 0.6% expansion (revised from 0.5%). <\/p>\n
The Japan\u2019s\u00a0Gross Domestic Product (GDP)\u00a0declined at an annual rate of 1.8% in Q3, compared to a rise of 2.3% in the previous reading (revised from 2.2%), stronger than the estimated -2.5% print.<\/p>\n
Market reaction to Japan\u2019s GDP data<\/p>\n
At the press time,\u00a0USD\/JPY\u00a0trades 0.03% higher on the day at 154.57.<\/p>\n
Japanese Yen Price Last 7 Days<\/p>\n
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies last 7 days. Japanese Yen was the strongest against the US Dollar.<\/p>\n
USDEURGBPJPYCADAUDNZDCHFUSD-0.56%-0.16%0.96%-0.64%-0.83%-0.72%-1.45%EUR0.56%0.40%1.62%-0.09%-0.27%-0.15%-0.90%GBP0.16%-0.40%1.22%-0.49%-0.67%-0.55%-1.29%JPY-0.96%-1.62%-1.22%-1.67%-1.85%-1.76%-2.47%CAD0.64%0.09%0.49%1.67%-0.20%-0.10%-0.81%AUD0.83%0.27%0.67%1.85%0.20%0.11%-0.62%NZD0.72%0.15%0.55%1.76%0.10%-0.11%-0.74%CHF1.45%0.90%1.29%2.47%0.81%0.62%0.74%<\/p>\n
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)\/USD (quote).<\/p>\n
This section was published at 22:28 GMT as a preview of Japan quarterly prelim GDP data.<\/p>\n
Japan quarterly prelim GDP Overview<\/p>\n
The Japan\u2019s\u00a0Cabinet Office\u00a0will publish its data for the third quarter (Q3) at 23.50 GMT. Gross Domestic Product is estimated to show a contraction of 0.6% QoQ in the Q3, compared to an expansion of 0.5% in the previous reading. Japan\u2019s GDP Annualized\u00a0is projected to show a fall of 2.5% versus a rise of 2.2% prior.<\/p>\n
The Gross Domestic Product is a measure of the total value of all goods and services produced in Japan during a given period. The GDP is considered as the main measure of Japan\u2019s economic activity.\u00a0<\/p>\n
How could the Japan quarterly prelim GDP affect USD\/JPY?<\/p>\n
USD\/JPY trades on a flat note on the day in the lead up to the Japan quarterly prelim GDP<\/a> data. The pair steadies as traders weigh whether the US Federal Reserve<\/a> (Fed)\u00a0 is likely to cut rates<\/a> in December.<\/p>\n If data comes in better than expected,\u00a0it could lift the Japanese Yen (JPY), with the first upside barrier seen at the November 13 high of 155.02. The next resistance level emerges at the February 3 high of 155.88, en route to the January 23 high of 156.75<\/p>\n To the downside, the November 10 low of 153.41 will offer some comfort to buyers. Extended losses could see a drop to the November 7 low of 152.82. The next contention level is located at the October 29 low of 151.54.<\/p>\n GDP FAQs<\/p>\n A country\u2019s Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter. The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022. A higher GDP result is generally positive for a nation\u2019s currency as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attracting higher foreign investment. By the same token, when GDP falls it is usually negative for the currency. When an economy grows and GDP is rising, people tend to spend more which leads to inflation. The country\u2019s central bank then has to put up interest rates to combat the inflation. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold versus placing the money in a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for Gold price.<\/p>\n","protected":false},"excerpt":{"rendered":"The\u00a0Japanese\u00a0economy contracted 0.4% over the quarter in the third quarter (Q3) of 2025, the preliminary reading released by…\n","protected":false},"author":2,"featured_media":262152,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":{"0":"post-267122","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/267122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=267122"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/267122\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/262152"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=267122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=267122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=267122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nAnnualized quarterly GDP figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely to last all year \u2013 such as happened in the first quarter of 2020 at the outbreak of the covid pandemic, when growth plummeted.<\/p>\n
\nWhen an economy grows people tend to spend more, which leads to inflation. The country\u2019s central bank then has to put up interest rates to combat the inflation with the side effect of attracting more capital inflows from global investors, thus helping the local currency appreciate.<\/p>\n