Dwayne Buzzell Blog | The unemployment rate fell in Japan in August | TalkMarkets

Dwayne Buzzell

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An economist, Forex trader and Forex writer, I have a keen eye for spotting international trading trends, particularly since shadowing my mother’s work over the past 20 years with one of the largest fashion groups.

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The unemployment rate fell in Japan in August

Date: Thursday, September 22, 2016 5:01 AM EDT

The yen weakened against other major currencies. The unemployment rate in Japan fell in July to 3.0 percent. USD / JPY was recorded on top of 102.45and it stabilized at 102.31. Household spending in Japan rose in July to minus 0.5 percent from minus 2.2 percent in the previous month and predicted growth at minus 0.9 percent. Japanese retail sales fell in July by 0.2 percent after falling 1.4 percent in the previous month. Economists had predicted a drop of 0.9 percent. In relation to the euro, the yen weakened. EUR / JPY climbed to 114.28. The index of import prices in Germany fell in July to 0.1 percent from 0.5 percent in the previous month, while the predicted fall to minus 0.1 percent. The Japanese currency fell to the British pound and the Swiss franc. GBP / JPY climbed to 133.78, and CHF / JPY jumped to 104.47. The number of approved mortgages in the UK fell in July to 60,910 from 64,150 in the previous month and predicted to drop to 61,900. The amount of new loans issued to consumers in the UK fell in July to 3.8 billion pounds from 5.1 billion in the previous month and was expected to fall to 4.9 billion pounds. Swiss KOF leading indicators fell to 99.8 points in August, with 103.5 in the previous month, while the predicted drop in 102.0 points. The yen fell against the Australian dollar. AUD / JPY jumped to 77.21. The approval for construction of new houses in Australia rose last week to 11.3 percent from minus 2.9 percent in the previous week, while the expected growth of minus 0.5 percent.

The euro was mixed relative to other major currencies after data released which showed that the index of import prices in Germany fell in July. Against the pound and the yen, the euro rose but fell against the franc. EUR / GBP climbed to 0.8530, EUR / JPY's rise to 114.27, and the EUR / CHF fell to 1.0945. The single currency rates rose against the Canadian, Australian and New Zealand dollars. EUR / CAD jumped to 1.4554, EUR / AUD climbed to 1.4783 and EUR / NZD rose to 1.5413. Euro Index fell 0.07 percent to 88.89.

Official data showed that the S & P composite index of house prices in the US rose in June by 5.1 percent after rising 5.3 percent in the previous month, which was in line with predictions. Forex pair EUR / USD fell to 1.1162. In the euro zone, the index posted a drop in consumer confidence in July to minus 9.0 points from minus 7.9 in the previous month, which was in line with forecasts. The US currency fell against the yen, pound and Swiss franc. USD / JPY climbed to 102.47, GBP / USD fell to 1.3105, and USD / CHF rose to 0.9811. USD / CAD rose to 1.3045, AUD / USD fell to 0.7541, while the NZD / USD dropped to 0.7232. A price index of industrial products in Canada rose in July by 0.2 percent after rising 0.7 percent in the previous month, while the predicted decline of 0.1 percent. Canada's current account balance fell in July to minus 19.9 billion to minus 16.6 billion in the previous month. Economists had predicted a fall to 20.5 billion dollars. The dollar index rose 0.27 percent to 95.80.

The Australian dollar was steady against other major currencies after data released which showed that the total amount of new loans issued to consumers and businesses in Australia increased in July. Forex pair AUD / USD  recorded  0.7532 and subsequently consolidated at 0.7521. The total amount of new loans issued to consumers and businesses in Australia rose in July by 0.4 percent, after rising 0.2 percent in the previous month, which was in line with predictions. In relation to the euro, the Australian dollar has strengthened. EUR / AUD dropped to 1.4813. The unemployment rate in Germany remained unchanged in July at 6.1 percent, which was in line with predictions. The number of unemployed fell in July for 7,000 people after the fall of 8,000 in the previous month. Analysts had expected a decline of 5,000. The consumer price inflation rose in August by 0.2 percent and predicted to rise by 0.3 percent, following an increase of 0.2 percent in July. Core inflation, which excludes prices of food, energy, alcohol and tobacco, rose 0.8 percent after rising 0.9 percent in July. The unemployment rate in the euro zone was unchanged in July at 10.1 percent, while analysts expected a drop to 10.0 percent. The Australian dollar rose against the yen. AUD / JPY climbed to 77.53. Japan's industrial production remained unchanged in July, after rising 2.3 percent in the previous month, while economists predicted growth of 0.8 percent. The number of new houses in Japan rose in the second quarter to 8.9 percent from minus 2.5 percent in the previous quarter, while analysts expected growth of 7.4 percent.

US stocks on Wall Street have risen even though investors are cautious because of the increasing likelihood that the Fed will soon increase interest rates. Dow Jones rose by 0.58 percent, the S & P 500 rose 0.52 percent, while the Nasdaq climbed 0.26 percent. Asian stocks have risen. Japanese Nikkei 225 index was up 0.03 percent, Hang Seng index in Hong Kong jumped 0.51 percent, while Australia's S & P / ASX 200 rose by 0.46 percent. European stocks rose. Euro Stoxx 50 jumped 0.87 percent, France's CAC 40 climbed 0.95 percent, Germany's DAX 30 was higher by 0.88 percent, while London's FTSE 100 rose 0.04 percent. 

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Craig Newman 7 years ago Member's comment

How's the overall trend looking for #Japan?

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