Japan Q2 suffers on consumption tax - Scotiabank

FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank notes a vulnerable backdrop in the Japanese economy.

"The Q2 weakness was a direct result of the dynamics that played out with the increase in the consumption tax, making data releases complicated to read”.

“Today’s print proves the worst contraction since March 2011 and highlights a particularly vulnerable backdrop in Japan. For the BoJ, the jump up in the GDP deflator to 2.0% will be welcomed; however from here evidence of a pick up in demand will be important."