Friday, 7 July 2017

What’s next? – USDJPY 07.07.17

Posted by Anonymous at 09:45 Labels:

USDJPY

The dollar/yen was up 0.46 percent to trade at 113.73 as of 05:50 GMT on Friday, with the greenback easing across the board on the back of downbeat economic reports.

ADP’s National Employment Report showed that the US private sector added 158,000 jobs last month, less than an initially forecasted 185,000 and a prior reading of 230,000 positions.

Also, the US Labor Department said initial jobless claims increased by 4,000 to a seasonally-adjusted 248,000 for the week ended June 30.

The US dollar index, which gauges the greenback against a basket of six major currencies, was 0.51 percent lower at 95.57 by the time of this writing.

Ahead in the day, most Forex traders will be focusing on a fresh edition of US employment data, including nonfarm payrolls, the unemployment rate and average hourly earnings.

Labor market conditions are key metrics for the Federal Reserve. Chairwoman Janet Yellen has recently insisted that labor, inflation and economic growth should continue performing well in order to move forward with a third interest hike later this year.

According to Fed funds tracked by CME Group’s FedWatch tool, traders are currently pricing in around a 50.6 percent probability of a rate move by December.

If Friday’s employment data comes in as a new disappointment, the USDJPY is likely to extend its advance to the 114.00 mark, which currently serves an immediate resistance.

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