As shown in the price action of USD/JPY, today's report is a good number for the U.S. dollar. In the Beige Book, the Fed said the economy grew over the past month even as harsh weather slowed hiring. With today's release, concerns about the slowdown will ease paving way for a stronger dollar rally ahead of the March 19th FOMC announcement. Today's number is a big relief for the central bank whose optimism about the economic outlook came into question with every piece of disappointing data. Janet Yellen's decision to continue reducing purchases will now receive more support than skepticism. The central bank is widely expected to drop its 6.5% unemployment rate threshold this month and adopt qualitative guidance. Barring a negative retail sales report next week, we expect USD/JPY to quietly trickle higher towards 105. EUR/USD on the other hand should find a new trading range between 1.3750 and 1.39. While this month's NFP report and 7bp increase in the 10 year yield assures that Fed policy will lead ECB policy, the recent optimism from ECB President Draghi will limit the downside for EUR/USD.
Up North, disappointing Canadian employment numbers drove USD/CAD sharply higher. A total of 7k jobs were lost in Canada last month, which is significantly worse than the market's 15k expectation. Although full time employment increased, the return to job losses will leave the Bank of Canada cautious. Combined with the recent sell-off in oil prices, USD/CAD could extend higher.
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GBP/USD rises above 1.3300 after UK Retail Sales data
GBP/USD trades with a positive bias for the third straight day on Friday and hovers above the 1.3300 mark in the European morning on Friday. The data from the UK showed that Retail Sales rose at a stronger pace than expected in August, supporting Pound Sterling.
USD/JPY recovers to 142.50 area during BoJ Governor Ueda's presser
USD/JPY stages a modest recovery toward 142.50 in the European morning following the initial pullback seen after the BoJ's decision to maintain status quo. In the post-meeting press conference, Governor Ueda reiterated that they will adjust the degree of easing if needed.
Gold consolidates weekly gains, with sight on $2,600 and beyond
Gold price is looking to build on the previous day’s rebound early Friday, consolidating weekly gains amid the overnight weakness in the US Dollar alongside the US Treasury bond yields. Traders now await the speeches from US Federal Reserve monetary policymakers for fresh hints on the central bank’s path forward on interest rates.
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum
Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
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