China GDP misses estimates, sparking demand for safe haven yen

Monday trading started off with risk aversion, following from Friday’s damp sentiment due to weak US data. This time it was disappointing growth numbers from China, which reported weaker-than-expected Gross domestic product (GDP) in the first quarter o this year that ended in March.

Since China is the world’s second largest economy and a huge driver of global trade, these numbers are causing concern to investors, who reacted by moving their money to safe haven assets such as yen and dollar.

According to a report from the National Bureau of Statistics said in Beijing today,  GDP gave a reading of plus 7.7 percent from a year earlier, lower than the 8 percent forecast  and down from 7.9 percent in the fourth quarter.

Adding to the gloomy numbers,  March industrial production numbers increased less than estimated while retail-sales growth matched forecasts.

The MSCI index, the regional benchmark index, retreated for the highest level in 20-months.

USDJPY fell 0.6 percent to a session low of 97.54 from the open level of 98.17. EURJPY slid 0.9 percent to 127.53 from 128.76.

EURUSD dipped to $1.3064 from $1.3113. GBPUSD slipped to $1.5307 from a session high of $1.5384.

AUDUSD dropped to $1.0415 from $1.0522.

Related Posts Plugin for WordPress, Blogger...

No comments yet.

Leave a Reply

You must be logged in to post a comment.