Japan’s economy rebounds in second quarter

10/08/2018

Japan’s economy grew more than expected in the second quarter, helped by strong household and business spending and recovering from an earlier contraction. However, global trade tensions emerge as major risks to the export and investment outlook. The economy grew by 1.9% on an annualized basis in April-June, more than the median estimate for a 1.4% annualized increase. The economy is expected to continue growing due to consumer spending and business investment, but there is growing unease about the pace of future growth, according to economists.

On Thursday, North Korea lashed out at the US for continuing to push sanctions enforcement, and stated that there would be no progress towards denuclearisation if the US followed an “outdated script.” It accused US negotiators of going against the intentions of President Donald Trump and the spirit of the summit in Singapore. In the June historical meeting, Trump and North Korean leader Kim Jong Un agreed to work towards denuclearisation. But details of that progress remain vague as the UN said that the North nuclear programme is continuing. Last month, the North accused the US of using “gangster-like” tactics in the negotiations after Pyongyang foreign minister called US actions “alarming.”


Crypto was seen trading mixed

The prices of cryptocurrencies were seen unchanged on Friday after losing 10% of market cap this week following US SEC’s announcement to postpone a crypto ETF decision. Bitcoin edged up by 1.6% to $6,446 on the Bitfinex exchange; Ripple lost 3.3% to $0.33764 and Ethereum dropped 0.3% to $360.3. A survey conveyed by analytics suggested that only about 8% of US citizens invest in cryptocurrencies, while around 41% of Americans said nothing would motivate them to invest in such digital coins. Bitcoin is expected to drop further through the rest of today and it may shift towards a record low of $6,000.

The EUR/USD pair slips below $1.15

The EUR/USD pair was seen much choppy during the session on Thursday amid geopolitical tensions such as Brexit reaching a no-deal and the global trade worries. It shifted from its 1.16 region to follow a bearish trend to reach towards its support handle of $1.15 in yesterday’s session. The US dollar is seen dropping value on Friday after reaching near a 13-month high overnight. The currency pair started shifting towards a downtrend around 04:00 GMT today, and it is expected to move towards $1.4400 region through the day.