Forex News Preview: Japan GDP to be released at 7:50 PM EDT

At 7:50 PM EDT, the Japan will release the 1^st quarter GDP.  Last quarter the quarter growth rate came in at 0.9%.  The annualized increase totaled 3.5%.  This was the highest growth rate since the 1^st quarter of 2007.  Exports contributed to the growth as demand from China helped offset slowing US growth.  Housing investment subtracted from growth as a result of a rule change in June which slowed construction nearly to a stop. 

 This quarter the expectation is for slower growth as the US slowdown and higher inflation hurt exports and spending.  The quarter on quarter gain is expected to slow to 0.6% while the annualized figure is expected to come in at 2.5% from the 3.5% previously reported.  The Price deflator is expected to decline by 1.5% versus a decline of 1.3% last quarter