Divergence Highlighted By Back-To-Back Contractions In Japan And UK But Little FX Reaction

welcomia Overview There has been a string of disappointing economic news today. Japan’s economy surprisingly contracted in Q4 ’23, and the Q3 contraction was a little deeper than initially estimated. Australia’s jobs growth was weaker than expected, and unemployment rose to 4.1%, matching the highest since November 2021. The UK’s economy contracted more than expected in Q4 ’23, its second consecutive quarter without growth. That seems like poor news ahead of today’s two byelections. The reaction in the foreign exchange market is just as surprising as the data. The yen strengthened, and the dollar (DXY, USDOLLAR) briefly traded below JPY150….