Yen Ignores Lowest Jobless Rate Since 2008, Strong Household Spending
Created Using Marketscope 2.0
THE TAKEAWAY: Investors largely ignored data released by Japan that showed Household Spending was at its highest point since 2004, and the jobless rate was at a low previously seen in 2008.
Early in Asian trade on Tuesday, Japan released economic data showing that Household Spending had impressed analysts expecting 1.6 per cent with 5.2 per cent versus a previous number of 0.8 per cent. This could be seen as good news for central bankers as their policies aimed at lifting Japan out of deflation may be having the desired affects. Further, the Jobless Rate fell to a low of 4.1 per cent not seen since 2008 reinforcing that the often recession ridden economy of Japan could be improving.
Regardless of the impressive data, the Yen remained stubbornly around the 97.90 mark as traders stayed largely bearish on the currency. Since November 2012, the currency has lost 23 per cent against the U.S. Dollar, but continued weakness is anticipated as policy makers use various techniques to achieve the 2 per cent inflation target by 2015.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.