Thursday, 5 October 2017

What’s next? – USDJPY 05.10.17

Posted by Anonymous at 12:09 Labels:

USDJPY

The dollar/yen was 0.04 percent down as of 07:55 GMT on Thursday to trade at 112.70, despite the greenback returned to green territory on the back of upbeat economic data.

The US dollar index, which gauges the greenback against a basket of six major rivals, was trading at 93.29 by the time of this writing, up 0.01 percent.

ADP employment change showed a 135,000 jobs build for September, above expectations for a 125,000 increase. Official data from the US Labor Department is due for release on Friday.

As official employment figures get closer, market players are taking a more cautious positioning, boosting the safe-haven demand, which includes assets like gold and the Japanese yen.

In a separate report on Wednesday, the Institute for Supply Management said its non-manufacturing PMI for September came in at 59.8, beating a forecasted 55.5 reading.

The Trump administration is currently interviewing candidates to replace Federal Reserve Janet Yellen. For the moment, Fed Governor Jerome Powell and former Governor Kevin Warsh seem to be on top of the list. Powell is seen as a more dovish candidate regarding monetary changes.

Ahead in the day, Powell is due to speak about the Treasury Markets Practices Group at the Federal Reserve Bank of New York by 13:10 GMT. Federal Reserve Bank of Philadelphia President Patrick Harker is also scheduled to deliver a speech in Texas at 14:00 GMT.

According to Fed funds tracked by CME Group’s FedWatch program, investors are pricing in a 76.7 percent chance of a 25 basis points interest rate hike by December.

On the data front, initial jobless claims and trade balance figures in the US for August will be available at 12:30 GMT. Factory orders are scheduled for release at 14:00 GMT.

Yesterday, Fed’s Yellen said the US regulator is working to ensure that financial regulations are accurate enough not to become a burden for institutions.

“For community banks, which by and large avoided the risky business practices that contributed to the financial crisis, we have been focused on making sure that much-needed improvements to regulation and supervision since the crisis are appropriate and not unduly burdensome,” said the Fed chief in prepared remarks.

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