Friday, 6 October 2017

What’s next? – USDJPY 06.10.17

Posted by Valentine at 01:47

USDJPY

The dollar/yen was 0.16 percent up as of 08:05 GMT on Friday to trade at 112.99, as the greenback extended gains on the back of upbeat economic reports.

The US dollar index, which gauges the greenback against a basket of six major rivals, was trading at 93.94 by the time of this writing, up 0.15 percent.

On Thursday, the US Labor Department said initial jobless claims dropped 12,000 to a seasonally adjusted 60,000 in the week ended Sept 30. Analysts had estimated a 7,000 draw.

In other news, the trade deficit fell to $42.4 billion in August, narrowing by $1.2 billion from July. Exports in the August moved to $195.3 billion, while imports were $237.7 billion.

Today, attention is directed to the September nonfarm payrolls, unemployment rate and average hourly earnings are due for release as of 12:30 GMT.

The Federal Reserve pays close attention to employment data as labor market conditions play a very important role when defining the future of monetary policy.

According to Fed funds tracked by CME Group’s FedWatch program, investors are pricing in a 81.7 percent chance of a 25 basis points interest rate hike by December.

Also, market players will be paying close attention to remarks from FOMC members Bostic at 13:15 GMT, Rosengren at 15:45 GMT, Dudley at 16:15 GMT, Kaplan at 16:45 GMT and Bullard at 17:00 GMT. Investors will analyze the rhetoric regarding further interest rate hikes.

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