1. Japanese Consumer Confidence Households
2. U.K. Claimant Count
3. Japanese Current Account Total

Japanese Consumer Confidence (SEP) (05:00 GMT, 01:00 EST)
Consensus: --
Previous: 48.4

Outlook:  Although no formal consensus is available for economists' expectations on confidence among Japanese consumers, the previous victory by Prime Minister Koizumi in the general election is likely to float spirits and produce a brighter outlook on the economy.  Since the last reading of confidence, more economic indicators have lent themselves to the idea that consumer spending will continue to support a recovery in the economy.  Leading the way were household spending and unemployment for August.  Household spending rose in the August for the first month in four by 3.2 percent.  Spending also received a boost over the same period from a reduction in the jobless rate to 4.3 percent.   This increase in spending over the month seems to be a continuation from the trend in the second quarter.  In the three months ending in June, the annualized rate of expansion by the world's second largest company rose 3.3 percent, backed by a 2.5 percent annual increase in personal spending.   This was the first time personal consumption and capital spending, rather than exports and government spending, has fueled economic recovery since 1991.  Further adding to speculation for a third straight period of improving confidence lies with the general election that found Prime Minister Koizumi to have the confidence of the voting population.  His ambitious plan to make the postal and insurance systems private, are expected to free up large amounts of money from the government's bills allowing more towards helping to boost the economy.  

Previous:  Consumers confidence made strides towards breaking through pessimism that has reigned over the country in over a year and a half.  A reading below 50 indicates the number of pessimists outpaced the number of optimists.  The indicator rose to 48.4 over July's 48.2 as consumers cope with higher oil energy prices to help support the recovery from recession by turning their yen back into the economy.  For the month of August, measures of consumer spending have shown that citizens are not afraid to spend the increased wages received over the period.  Retail sales for the month jumped 1.5 percent, while overall household spending accelerated 4.8 percent.  As long as citizen's confidence continues to brace spending, it is expected that inflation should return in early 2006 - providing an opportunity for the Bank of Japan to finally consider boosting the benchmark lending rate.

U.K. Claimant Count Rate (SEP)(8:30 GMT, 4:30 EDT)
Outlook: 2.8%
Previous: 2.8%

Outlook: The British claimant count rate is expected to have again remained steady at 2.8 percent for the month of September with claims expected to climb now for the eighth consecutive month.  Economic growth continued to slow through September with the weight of continually high oil prices still being felt.  Subsequently, consumer spending, which accounts for two-thirds of the economy, has continued to slow with retail sales falling the most in at least 22 years during the month.  The housing market is slowing, hurting consumer sentiment, and manufacturers are continuing to close plants and cut jobs due to rising costs.  Despite a sharp rise in inflation during August, average earnings growth is expected to have remained unchanged at 3.9 percent excluding bonuses (4.2 percent inclusive) due to the slowdown in employment, which is also fueling the current drag in consumer spending.

Previous: The British jobless claims rate remained steady at 2.8 percent as expected in August, with jobless claims rising for the seventh month in a row, the longest streak in almost thirteen years.  After 52 quarters of expansion, leading to record employment, the economy is beginning to soften and jobs at risk.  Slowing consumer spending pulled annual economic growth in the second quarter down to its lowest level since 2002, prompting companies, specifically retailers, into layoffs.  Manufacturers were also forced to cut jobs as high oil prices increased bottom line costs.  This slowdown in hiring kept wages from growing steadily, despite the upward push on the inflation rate due to higher energy prices.  Excluding bonuses, incomes grew 3.9 percent in the three months through July, down from 4 percent in the 3 months before.  This is the slowest rate of wage growth since February 2004.  Including bonuses however, incomes grew 4.2 percent in the same period, up 0.1 percent from the period before.

Japanese Current Account Total (AUG)(23:50 GMT, 19:50 EDT)
Outlook: ¥ 1190.0B
Previous: ¥ 1649.8B

Outlook: The Japanese trade surplus is expected to have narrowed in August to ¥1190.0 billion.  It is expected that exports may have suffered during the month specifically due to record high oil prices squeezing consumer spending globally.  One of the biggest drops is worried to be in the automobile industry exports, with US demand for cars down due to record high gasoline prices during the month.  Rising energy costs during the month are also expected to have again pushed up the value of overall imports, magnified by the fact that Japan imports almost all of its fuel consumption.  Nonetheless, Japan's economy is in continuously better shape, growing after its fourth recession since 1991, as growing domestic demand and further capital investment look to continue.

Previous: The Japanese current account total rose 0.8 percent from July 2004 to ¥1649.8 billion.  Seasonally adjusted however, the surplus narrowed by 9 percent from June to ¥ 1367.6 billion, a higher than expected drop and the first fall in four months.  Imports in July rose 4.5 percent with exports only rising 0.7 percent.  The narrowing surplus reflects high oil prices, which are heavily pushing up the value of imports. There is also a higher volume of imports to Japan due to an increasing domestic demand spurred by an economic recovery in the country.  Japan's economy grew 3 times faster than expected in the second quarter at a rate of 3.3 percent as businesses begin to spend more as the economy makes its exodus out of a recession.  Helping consumer demand is also a 1.7 percent wage increase in July, the biggest wage increase in 8 months, as well as an increase of 0.6 percent in the number of full time employees.

Richard Lee is a Currency Strategist at FXCM.