FX.co ★ Yen Strengthens Following Upward GDP Revision

The Japanese yen strengthened to surpass 144.5 against the US dollar on Monday, following a bout of losses over two days. This shift comes as revised figures indicated that Japan's GDP for the first quarter remained steady, countering the earlier estimate of a 0.2% decrease. However, despite this optimistic revision, it highlights a notable slowdown from the 0.6% growth logged in the preceding quarter. Additionally, Japan observed a narrowing current account surplus in April, which did not meet market forecasts, introducing a layer of complexity to the economic outlook. Meanwhile, Bank of Japan Governor Kazuo Ueda reiterated the central bank's preparedness to increase interest rates should the targets for economic growth and inflation be realized, suggesting a cautious but consistent approach to tightening monetary policy. On the global scene, investors are also focusing on the forthcoming trade discussions between the US and China, with negotiations expected to take place in London later today.