Yen hits two-week high on upbeat growth, inflation data

Yen climbed to July 26 highs against dollar in Asian trade after strong growth and inflation data, and ahead of crucial US consumer prices data later today. 

As of 07:12 GMT, USD/JPY slipped 0.18% to 110.88, with a two-week low at 110.6, and a session-high at 111.17. 

Earlier Japanese data showed the preliminary GDP reading with a 0.5% growth rate in the second quarter, the best in a year, and beating estimates of 0.3%, while growing 1.9% on a yearly basis, compared to a 0.6% drop in the previous quarter and beating estimates of a 1.4% expansion rate. 

An index tracking GDP prices rose 0.1%, slowing down from 0.5% in the first quarter but edging forecasts of no-change.

Producer prices rose by an excellent 3.1% y/y last month, the best since December 2017 and up from 2.8% in June, while beating estimates of 2.9%. 

Now markets await US data on consumer prices, expected to have increased by 0.2% in July, up from 0.1% in June, while core prices are estimated with a 0.2% rise, same as before.