- Japanese CPI 3.7% y/y in May vs. 3.7% Expected, 3.4% in April
- Household Spending -8.0% y/y in May vs. -2.1% Expected, -4.6% in April
- Jobless Rate 3.5% in May vs. 3.6% Expected, 3.6% in April
Japanese CPI and employment numbers came in relatively in line with expectations. The headline year-on-year inflation rate printed at 3.7 percent, in line with expectations and 0.3 percent higher than in April. Household Spending fell 8 percent year-on-year over the same period, falling short of expectations calling for a 2.3 percent decline and following a 4.6 percent drop in the prior month. The jobless rate edged lower to 3.5 percent, marking a slightly better print than the 3.6 percent outcome penciled in by economists ahead of the release.
The Japanese Yen was relatively unmoved after the data release. The lackluster response seemed to reflect the outcomes’ close proximity to expectations – meaning the results were largely priced in – as well as the data’s limited implications for Bank of Japan policy. Central bank officials have vocally opposed stimulus expansion over recent months. An upbeat round of economic news bolstered that status quo, offering little to inspire investors to re-adjust exposure and thereby move asset prices.
USD/JPY (5min chart) – 6/26/2014. Created with FXCM Marketscope