EUR/JPY looks firmer and approaches 132.00

EUR/JPY trades with an upside bias near the 132.00 mark.
The dollar looks depressed ahead of April Payrolls.
ECB’s Lagarde said climate change will be part of policy.

Pablo Piovano FXStreet

EUR/JPY extends the weekly recovery and trades at shouting distance from the key barrier at 132.00 the figure on Friday.

EUR/JPY bid ahead of Payrolls

EUR/JPY keeps the upbeat mood in the second half of the week and navigates new multi-day highs in the proximity of the 132.00 yardstick.

The persistent selling bias in the greenback, steady US yields and the consolidative fashion surrounding the Japanese yen keep sustaining the upside momentum in the European currency and push the cross to higher ground.

Data wise in Euroland, German Industrial Production expanded more than expected in March, while the trade surplus shrunk somewhat in the same period.

Investors’ attention, however, remains on the US monthly report, with consensus seeing the US economy to have added nearly 980K jobs during April, while the jobless rate is expected to recede to 5.8% (from 6.0%). Better-than-expected results are predicted to lend fresh legs to the dollar and supports the strong US economic rebound narrative, at least in the short-term horizon.

EUR/JPY relevant levels

So far, the cross is gaining 0.13% at 131.76 and a surpass of 132.36 (2021 high Apr.29) would pave the way for a test of 133.00 (psychological hurdle) and then 133.13 (monthly high Sep.21 2018). On the flip side, immediate contention is located at 130.98 (weekly/monthly low May 5) seconded by 130.05 (50-day SMA) and finally 129.58 (weekly low Apr.23).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.