USD/JPY inches towards 136.00 on higher-than-expected Unemployment data
The USD/JPY pair is aiming towards 136.00 as the Statistics Bureau of Japan has reported higher-than-expected Unemployment data. The jobless rate has improved to 2.6%, higher than the estimates and the prior print of 2.5%. While, the Jobs/Applicants ratio has improved to 1.24, higher than the former print of 1.23 but remains in line with the consensus of 1.24.
The higher jobless rate has weakened the Japanese yen against the greenback. The Bank of Japan (BOJ) has been keeping its ultra-loose monetary policy intact for a prolonged time to keep accelerating the aggregate demand. However, accelerating unemployment levels may force the BOJ to keep up with the prudent monetary policy as a tight labor market will always remain crucial for the Japanese economy.
Coming to the Tokyo inflation rate, the economic data has remained in a mid of estimates and the prior print of 2.2% and 2.4% respectively. A sustained inflation rate is lucrative for the yen bulls in the longer horizon.
On the dollar front, the US dollar index (DXY) is displaying some signs of exhaustion in the downside move and the pullback move is on the cards. The DXY witnessed an intense sell-off after the US CORE Personal Consumption Expenditure (PCE) Price Index landed along with the expectations of 4.9% but lower than the prior release of 4.9%. Even a minor fall in the inflation indicator seems lucrative for the risk-perceived assets. In today’s session, the spotlight will remain on the US ISM PMI numbers. The economic data is seen lower at 55 vs. 56.1 recorded previously.
Reference by: Investing.com