Yen loses ground after GDP contraction

Dollar tilted higher in Asian trade against yen following disappointing data from Japan and ahead of US inflation data later today. 

As of 05:42 GMT, USD/JPY rose 0.09% to 113.91, with an intraday high at 113.99, and a low at 113.76. 

From Japan, GDP growth contracted 0.3% q/q as expected according to initial estimates, compared to a 0.7% increase in the second quarter, while contracting 1.2% y/y, compared to a 3.0% increase in the second quarter. 

Japan's industrial output fell 0.4% in September, compared to August's 1.1% drop. 

Japanese Prime Minister Shinzo Abe expressed in recent remarks his support of Bank of Japan's quantitative easing to prop up the economy, pointing to the need to support spending in the first half of 2019. 

Now investors await US consumer prices data, estimated with a 0.3% monthly increase in October, up from 0.1% in September, while expected with a 2.5% yearly increase, up from 2.3%. 

Core prices are estimated with a 0.2% increase, up from 0.2% in September, while forecast with a 2.2% yearly bump. 

Otherwise, Federal Reserve Governor Randal Quarles is due to testify on banking supervision and regulation before the House Financial Services Committee, in Washington DC, later today.