Article Highlights

  • Japanese economy contracted 0.4% in Q3 2014
  • Nikkei down 2.96% for the day
  • Australia’s new motor vehicle sales fell by 1.6% in Oct
  • U.K. Rightmove HPI down by 1.7% in Nov
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Newsflash! Japan has officially slumped into recession, as the economy contracted 0.4% in Q3 2014. Instead of selling off though, the yen rallied as traders priced in the increased likelihood of seeing snap elections and a delay in the next sales tax hike for Japan.

USD/JPY is down 0.35% and is trading back below 116.00 after initially spiking to a high of 117.04. EUR/JPY is down 0.29% near 145.00 and GBP/JPY is down 0.16%. Japanese equities also got slammed, as the Nikkei chalked up a 2.96% loss for the day.

In Australia, new motor vehicle sales marked a 1.6% decline in October, indicating that consumers are paring their big-ticket purchases. AUD/USD is up 0.25% though and AUD/JPY is looking at a mere 0.07% loss, as risk appetite still seems to be supporting the commodity currency.

The U.K. posted a 1.7% decline in house prices for the current month based on the Rightmove survey yet GBP/USD is still holding on to a 0.17% gain so far. As for the euro, Italian and euro zone trade balance figures are up for release and might provide a bit of volatility. EUR/USD is up 0.04% so far and may see more movement much later on as Draghi is set to give a speech around 3:00 pm GMT.

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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