Forex - Yen rebounds on upbeat jobs data, CPI, retail sales disappoint

Investing.com - The yen was flat to stronger on Friday after a mass of economic data painted a mixed picture on downbeat inflation and retail sales figures, but a boost to the jobs outlook.

USD/JPY traded at 119.17, down 0.02%, while AUD/USD changed hands at 0.7833, up 0.05% and EUR/USD stood at 1.0886, up 0.02%.

In Japan, February national core CPI (excluding perishables but including energy) rose 2.0%, less than the 2.1% year-on-year gain expected, a 21st year-on-year rise but the smallest gain since 1.3% in March 2014.

The unemployment rate came in at 3.5% as expected, down from 3.6% in January, while the job offers to seekers index met its 1.15 expectation (115 job offers for every 100 people looking for work), up from 1.14 in January and posting the highest reading since 1.19 in March 1992.

Household spending fell 2.9%, less than the 3.2% year-on-year decline seen in real terms, but still an 11th consecutive year-on-year drop.

February preliminary retail sales data showed a drop of 1.8% year-on-year, more than the 1.5% decline expected and the second straight year-on-year drop after a 2.0% decline in January.

Overnight, the dollar turned mostly higher against a basket of other major currencies on Thursday, as data showing that the number of people filing unemployment assistance in the U.S. last week fell to a five-week low sparked optimism over the strength of the job market.

In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 21 declined by 9,000 to 282,000 from the previous week’s total of 291,000. Analysts had expected initial jobless claims to fall by 1,000 to 290,000 last week.

Another report showed that the U.S. service sector expanded at the fastest rate this month since September. Research group Markit said the preliminary reading of its services purchasing managers index rose to 58.6 from a final reading of 57.1 in February.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was quoted at 97.57, up 0.03%.

The euro found support Thursday after data showed that the Gfk German consumer climate index was set to rise to 10.0 in April from a reading of 9.7 the previous month, compared to expectations for an uptick to 9.8.

But investors remained cautious as Greece failed in a bid on Wednesday to secure a quick cash payment from the euro zone rescue fund to help stave off potential bankruptcy next month.

Athens had appealed for the European Financial Stability Facility to return €1.2 billion it said it had overpaid when it transferred bonds intended for bank recapitalization this month.

The Greek government is expected to present a detailed list of proposed reforms to its eurozone partners by next Monday.