Friday, 4 August 2017

What’s next? – USDJPY 04.08.17

Posted by Valentine at 09:03 Labels:

USDJPY

The dollar/yen was up 0.09 percent as of 03:30 GMT on Friday to trade at 110.13, with the American currency easing in early trading as market participants awaited a key jobs report.

The US Labor Department will release its monthly employment report as of 12:30 GMT and it will include relevant data such as nonfarm payrolls, average hourly earnings and the unemployment rate. All of these are important for the Federal Reserve and the direction of monetary policy.

The dollar also came under pressure overnight on the back of the ongoing political turmoil in Washington. The Wall Street Journal reported that a grand jury is now taking action into the investigation of an alleged Russian interference with the 2016 US presidential election.

Intelligence services and the Democrats believe Russia tried to influence the result of the election in favor of Donald Trump and his Make America First Again campaign.

The US dollar index, which gauges the greenback against a basket of six major rivals, traded at 92.66, easing 0.05 percent by the time of this writing.

In economic news, Japan reported a 0.4 percent reduction on average cash earnings for June. Earlier the US Labor Department said people claiming unemployment benefits dropped by 5,000 to a seasonally adjusted 240,000 in the previous week.

The pair is now on a neutral stage ahead of key data. Key support is found at 110.04, while pivot could be identified as the 110.08 mark and the first area of resistance begins at 110.13. There is a predominant bearish bet on the market, but market forces are still pretty balanced.

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