Monday, 9 October 2017

What’s next? – USDJPY 09.10.17

Posted by Valentine at 11:50 Labels:

USDJPY

The dollar/yen was 0.02 percent up as of 07:15 GMT on Monday to trade at 112.63, as the greenback recovered following downbeat labor market data.

The US dollar index, which gauges the greenback against a basket of six major rivals, was trading at 93.66 by the time of this writing.

Japanese markets will remain closed on Monday due to the Health-Sports Day holiday. South Korea and Taiwan are also inactive. Activity in Asia was rather thin on Monday.

No relevant data is expected on Monday western hours. Late on Monday, traders will count on a fresh reading of the Nippon current account for August as of 23:50 GMT.

Also, Bank of Japan Governor Haruhiko Kuroda is scheduled to speak at 00:30 GMT on Tuesday. He is expected to insist on his dovish rhetoric.

Ahead this week, attention will be directed to the release of Fed minutes on Wednesday and fresh inflation figures on Friday. Both reports are expected to have effects on expectations for further monetary policy changes, especially on the future of interest rates.

According to Fed funds tracked by CME Group’s FedWatch program, investors are pricing in a 91.7 percent chance of a 25 basis points interest rate hike by December.

Earlier, the US Department of Labor said the economy added 33,000 jobs in September. While data came in below expectations and put an end to seven consecutive years of labor market growth, investors understood data was influenced by the effects of Hurricanes Irma and Harvey.

The unemployment rate dropped to 4.2 percent and average hourly earnings increased 2.9 percent year over year.

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