Japanese Labor Cash Earnings in November broadly missed the mark early Wednesday, with nominal wages printing at 0.2% YoY versus the forecast of 1.5%. Markets expected nominal earnings to hold steady with October's print, and after adjusting for inflation, real wages have declined 3% YoY.
Overall Household Spending for the year ended November also fell further back from the previous period, declining 2.9% YoY in November versus October's YoY -2.5%.
Market Reaction
Early Wednesday market volumes remain thin, and the USD/JPY continues to trade tightly near 144.40.
About Labor Cash Earnings
This indicator, released by the Ministry of Health, Labor and Welfare, shows the average income, before taxes, per regular employee. It includes overtime pay and bonuses but it doesn't take into account earnings from holding financial assets nor capital gains. Higher income puts upward pressures on consumption, and is inflationary for the Japanese economy. Generally, a higher-than-expected reading is bullish for the Japanese Yen (JPY), while a below-the-market consensus result is bearish.
About Overall Household Spending
The Overall Household Spending released by the Ministry of Internal Affairs and Communications is an indicator that measures the total expenditure by households. The level of spending can be used as an indicator of consumer optimism. It is also considered as a measure of economic growth. A high reading is positive (or Bullish) for the JPY, while a low reading is negative (or bearish).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
How will US Dollar react to December Nonfarm Payrolls data? – LIVE
Nonfarm Payrolls in the US are expected to rise 160,000 in December. The details of the jobs report could reaffirm whether the labor market conditions are tight enough for the Fed to approach policy easing more cautiously in 2025 and drive the US Dollar's valuation.
EUR/USD holds near 1.0300 as traders await US NFP
EUR/USD trades in a tight channel at around 1.0300 in the European session on Friday. However, concerns over US President-elect Trump's policies and hawkish Fed expectations keep the US Dollar afloat ahead of the Nonfarm Payrolls data, capping the pair's upside.
GBP/USD struggles to stay above 1.2300, eyes on US jobs report
GBP/USD finds it difficult to gather recovery momentum after rising above 1.2300 earlier in the day. The pair remains vulnerable amid persistent US Dollar strength and the UK bond market turmoil. The focus now shifts to the US labor market data for fresh directives.
Gold climbs to fresh multi-week high above $2,680 ahead of US NFP
Gold price (XAU/USD) gains some follow-through positive traction for the fourth consecutive day and trades at its highest level in nearly a month above $2,680. Market focus shifts to US labor market data, which will feature Nonfarm Payrolls and wage inflation figures.
How to trade NFP, one of the most volatile events Premium
NFP is the acronym for Nonfarm Payrolls, arguably the most important economic data release in the world. The indicator, which provides a comprehensive snapshot of the health of the US labor market, is typically published on the first Friday of each month.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.