- USD/JPY has attracted bids near 122.00 on firmer DXY.
- Improved US Jobless Rate has raised the odds of a 50 bps interest rate hike from the Fed.
- The Russia-Ukraine negotiations seek an official confirmation of a ceasefire.
The USD/JPY pair has bounced back sharply after a corrective pullback from the last week’s high at 125.10 as investors turned to the mighty greenback on record lows US Unemployment Rate. The pair have established above 122.00 and is displaying a positive open test-drive session on Monday in which a minor weakness at the open gets shrugged off after the asset oversteps the opening price of the trading session.
The US Unemployment Rate reported on Friday has shifted the focus on a jumbo-size interest rate hike by the Federal Reserve (Fed) in May. The Unemployment Rate has landed at 3.6% lowest since February. The major agenda of the Fed is to achieve full employment and the US economy is maintaining it technically amid securing a Jobless Rate below 4% since December. This has raised the odds of an interest rate hike by 50 basis points (bps) in May’s monetary policy significantly. The US dollar index (DXY) has jumped near 98.50.
Meanwhile, the peace talks between Russia and Ukraine is getting progressed as negotiations between Russian leader Vladimir Putin and Ukraine’s President Volodymyr Zelensky after the development of a specific written document are likely to bring a ceasefire soon.
Negotiator David Arakhamia told Ukrainian media that an encounter between Ukraine's President Volodymyr Zelensky and Russian President Vladimir Putin would "with a high probability" inch towards a ceasefire. The nations are approaching a ceasefire verbally however, no official confirmation has come in writing.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.