Trade Desk Thoughts - Japanese Unemployment Rate

Japanese Unemployment Rate Actual 4.2%, Expected 4.1%, Previous 4.0%

Release Explanation: This report measures the percent of unemployed persons in the labor force. The unemployment rate can be a leading indicator of the overall health of the labor market. Higher unemployment leads to less income for Japanese workers who, in turn, may reduce consumption. As consumer spending contributes to a majority of Japan’s GDP, developments in the labor market directly affect prospects for Japanese growth.

Trade Desk Thoughts: Japans unemployment came in at 4.2 percent which was higher than analysts’ expectations of 4.1 percent. The job to applicant ratio was 0.86 which is below the previous months 0.89. This has caused households to tighten up on spending and consumption as the Japanese economy remains sluggish. Bank of Japan officials have stated that there is considerable uncertainty on the banks outlook for the recovery of the worlds second largest economy.

Forex Technical Reaction: The yen increased slightly from the reports that have been released this evening. The pair is still quite a ways from the neutral LFB pivot at 104.95.

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