Japanese data dump: Markets unfazed while USD/JPY consolidates strong rally
|Japanese data is coming through today, staring with the Unemployment Rate the Jobs application ratio and Industrial Production.
Jobs data
| Jobs / Applicants Ratio(May) | 1.2, | vs consensus | 1.23 and prior | 1.32 |
| Unemployment Rate(May) | 2.9 %, | 2.8 %, | 2.6 % |
- Japan may jobless rate rose to highest level since May 2017.
- Japan govt official: Impact from coronavirus on job market warrants close attention.
Industrial Production
- May Industrial Output -8.4% MoMm- meti (Reuters poll: -5.6%).
- Japan manufacturers see June output +5.7% MoM (prev forecast: +3.9%).
- Japan manufacturers see July output +9.2% MoM.
Japan's industrial output fell 8.4% in May from the previous month to mark a fourth straight month of declines, government data showed on Tuesday, underscoring the pain inflicted by the coronavirus pandemic on factory activity.
The fall compared with a median market forecast of a 5.6% decline in a Reuters poll of economists.
Manufacturers surveyed by the Ministry of Economy, Trade and Industry (METI) expect output to rise 5.7% in June and increase 9.2% in July, the data showed,
Reuters reported.
USD/JPY update
Unchanged on the data, USD/JPY has been rejected in the 107.80s but has found support o the correction of the impulse at the mid-point of the 107 level.
Description of the Unemployment Rate
The Unemployment Rate which comes from the Ministry of Health, Labour and welfare and it's published by the Japan Statistics Bureau, is a measure of the percentage of unemployed in Japan. A high percentage indicates weakness in the labor market which influences the strength and direction of the Japanese economy. Therefore, a low percentage should be taken as positive or bullish for the JPY.
Description the Industrial Production
The Industrial Production released by the Ministry of Economy, Trade and Industry measures outputs of the Japanese factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as bullish for the JPY, whereas a low reading is seen as bearish.
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