On Friday, the Japanese statistic institution released the jobless Rate Data. That increased quite high from 2.6% to 2.8% in April. That number is higher than the forecast increase of 2.7 percent. 

The high coronavirus cases in Japan makes the consumption sector was increasing and it has an impact to the slow absorb of the employment. In a different release, pandemic also has an effect to another sector. 

It is the employment part. It can be seem from the job ratio data to the application ratio which declined from 1.1 to 1.09 in April. That clearly shows that the Japanese employment is declining. 

That Trend May Be Continued

The job offer can be declining again in May. It is because the steps taken by the Japanese government where they extend the lockdown until 20 of June. It has several effects further. 

That situation will make the employment sector recovery is slower. However, the wider coronavirus vaccination is a good hope to make the economic sector is back to normal again. 

Meanwhile, the main CPI data in Tokyo for this month is reported by – 0.2 percent year on year. That is actually better than the declining estimation to -0.6%. How about the next trend? 

So many parties predicted that the trend like that will be continued. It is especially in the middle of the COVID-19 cases which are still high in this present time. 

The USD / JPY Pair Doesn’t React too Much

Generally, the USD/JPY pair doesn’t react too much because of that Jobless Rate and the Tokyo CPI data release yesterday morning. That currency pair increased slight by 0.03 percent. 

It reached the level of 109.86 when this news was released. The analysts stayed that the extended coronavirus case status in Japan until 20 of June will Increase a possibility. 

It is related to the Bank of Japan decision which may extend the stimulus as well. The representatives of that Bank stayed that they will add the pandemic fun program period if it is needed. 

However, some analysts are still sceptical because they think that BOJ cannot do more to recover the slow economic grow in Japan. That is quite reasonable based on sow facts seem so far. 

Meanwhile, Pound Sterling Is Incresasing

Elsewhere, pound sterling increased by more than 0.5 percent to the level around 1.4210 to the US dollar. That can be seen from the sales happened on Thursday. That happened after a statement made by the Central Bank. 

One of their representatives said that the interest rate can be increased faster. Pound has been increasing against the Yen and Euro in line with that news. However, the resistance stopped it. 

On the Thursday night, the members of bank of England policies committee stated that he predicted that the interest rate increase may be happened at the end of 2022. It is inline with the market expectation. 

That expectation was formed after the BOE tapering at the end of April. He added that the interest rate Increse can be done faster at the beginning of 2022 next year. 

The Different Analysis in the Market

In fact, some analysts also doubting that statement. It is because their period will be ended in August so that his opinion will be not taken anymore by BOE next year. 

Meanwhile, some British economic data may get the temporary corrections as well. It is after the government taken the furlough subsidies at the end of September this year. That is 3 months after lockdown is ended. 

The latest weekly data from the Office for National Statistics shows that the number of people eating outside have been significantly increasing. The job advertisement has been back to the pre-pandemic level too.