Daily Digest Market Movers: Japanese Yen draws some support from the upbeat domestic data and intervention fears

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  • According to a report published by Japan's Statistics Bureau this Tuesday, the unemployment rate dipped from 2.5% previous to 2.4% in September and the job-to-applicant ratio rose to 1.24. 
  • The data reflects strong demand for labor and supports prospects of rising wages, which might lead to a higher inflation outlook and should allow the Bank of Japan to hike interest rates again.
  • Japan's Finance Minister Katsunobu Kato said that he is closely watching FX moves, including those driven by speculators, with a higher sense of vigilance, reviving intervention fears.
  • Japan's Prime Minister Shigeru Ishiba is reportedly seeking a coalition with the Democratic Party for the People (DPP) after failing to retain a majority in the lower house election over the weekend.
  • DPP leader Yuichiro Tamaki said that the BoJ should avoid big policy change now with real wages still at a standstill and wants policymakers to scrutinize whether real wages turn positive stably in guiding fiscal, monetary policy.
  • The US Treasury bond yields retreat further from a multi-month top and keep the US Dollar bulls on the defensive below the highest level since July 30, exerting pressure on the USD/JPY pair. 

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