Yen Still Uncertain on BoJ Outlook as Jobless Rate Inches Higher
- USDJPY and other yen crosses held key levels despite the update of important data this morning
- Jobless Rate unexpectedly rose to 3.4 percent versus the 3.3 percent forecast
- Speculation of another upgrade to BoJ QQE on the one-year anniversary of the last upgrade remains limited
The Japanese Yen held steady against the US Dollar and most other crosses as a set of important economic data crossed the wires. Japan’s jobless rate for August rose unexpectedly to 3.4 percent as opposed to holding at the 18-year low 3.3 percent as was forecast. The country’s job-to-applicant ratio inched higher as well to 1.23 versus the 1.21 consensus estimate. Helping to offset some of the employment disappointment, the overall household spending rose much more than expected. The gauge of Japanese expenditures on goods and services came in at 2.9 percent as opposed to the 0.3 percent prediction.
The restrained reaction from the currency may be due to the market’s expectation that this particular set of data will not weigh heavily on Bank of Japan’s monetary policy decisions. In its September monetary policy statement, the central bank maintained its target for increasing the monetary base by an annual pace of 80 trillion Yen.
Looking forward to next week’s event risk, Japan’s PMI figures and machine orders are due. Currently, there is no forecast for the PMI data. Machine orders year-over-year is expected to increase to 3.7 percent as opposed to the 2.8 percent print in July.
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