- US economy adds 315K jobs in August, Unemployment rate rises to 3.7%.
- USD/JPY pulls back amid a weaker US dollar after NFP.
- Yen remains under pressure, now on risk appetite.
The USD/JPY is falling modestly on Friday, after hitting earlier at 140.79, the highest level since 1998. A weaker US Dollar across the board weighed on the pair following the official US employment report.
US yields retreat sharply
Non-farm payrolls rose by 315K in August against expectations of a 300K increase. The unemployment rate rose unexpectedly from 3.5% to 3.7%, however, the labor participation rate also rose.
After the report, US yields dropped sharply favoring the decline in USD/JPY. The US 10-year yield fell to 3.17% and the 2-year fell from 3.52% to 3.40%. At the same time, equity prices in Wall Street rose. The Dow Jones was rising by 0.81% and the Nasdaq by 0.79%.The Japanese yen failed to stage a broad-based recovery on the back of the improvement in risk sentiment.
Despite falling on Friday, USD/JPY is about to post the third consecutive weekly gain and the highest close since 1998. The divergence between the Bank of Japan and the Federal Reserve’s monetary policy continues to drive the pair to the upside. At their next meeting, the BoJ is expected to keep the ultra-expansive stance while the Fed is seen raising rates by 50 or 75 basis points.
Technical levels
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.