The data from earlier is here:
- Japan data – July household spending +0.1% y/y (expected +1.2%)
- Consumer spending +0.1% in July y/y compared with the median market forecast for 1.2%
- month-on-month saw it slump 1.7% against the -0.2% expected
Admittedly other data points are more encouraging for the Bank of Japan, notable wages from earlier this week:’
Still, the data today can;t be ignored.
Reuters cite:
- “There is a very good chance that consumer spending will be negative again in the next month,” said Takeshi Minami, chief economist at Norinchukin Research Institute, adding that households appear to be sceptical about whether wage gains will continue next year.
More at the link to the Reuters recap here.
Meanwhile, yen traders seem content to sit it out awaiting the NFP.
The NFP is at 1230 GMT / 0830 US Eastern time:
- Goldman Sachs on what its gonna take from NFP for a 50bp interest rate cut from the FOMC
- What would it take from non-farm payrolls to get a 50 basis point cut?
- Preview: Why August non-farm payrolls frequently disappoint
- What would it take from non-farm payrolls to get a 50 basis point cut?
- Goldman Sachs NFP preview, say that August payrolls often have a negative bias initially
- Friday’s NFP result could prompt a 50bp rate cut by the Federal Reserve
This article was written by Eamonn Sheridan at www.forexlive.com.
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