USD/JPY drops below 150 after soft US jobs data – Rabobank
|For a number of hours leading to the softer than expected US July labour report, USD/JPY was back to trading above the 150.00 level for the first time since early April, Rabobank's FX analyst Jane Foley reports.
Fed dovish hopes resurface on weaker labor report
"The outcome of this week’s Fed and BoJ policy meetings contributed to the move with the Fed being widely interpreted as less dovish than expected and the BoJ as less hawkish. The US jobs report has re-charged Fed easing hopes."
"We expect that USD/JPY can extend today’s move lower on a 3-month view, but that assumes that the market maintains the expectation that BoJ rates will be hiked around the turn of the year. To a large degree that depends on how the Japanese economy fares in a post-Trump tariff world."
"Despite its robust tone in July, the USD has today proven that it is susceptible to renewed weakness on speculation that the Fed will adopt a dovish policy bias going forward. It is Rabobank’s view that the Fed may cut rates four times next year in addition to a move next month."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.