Analysis and Recommendation: The USD/JPY eased by 7 points to 121.66 trading near the top of its quarterly trading range as the US dollar mounts momentum
The USD/JPY eased by 7 points to 121.66 trading near the top of its quarterly trading range as the US dollar mounts momentum ahead of today’s nonfarm payroll as well as Fed speakers all pushing a December rate increase. The dollar traded within sight of its highest level in a decade versus major peers ahead of U.S. employment reports that may help determine if the Federal Reserve will raise rates this year. Chinese stocks were mixed after the Shanghai Composite Index entered a bull market Thursday.
The Bloomberg Dollar Spot Index was steady, with the greenback having gained against 12 of 16 major peers over the past five days. Gold was higher after seven straight daily declines.
The dollar has surged as Fed officials including Chair Janet Yellen have reiterated that they may well lift rates next month if the data support it. Economists predict the October payrolls report will show an increase in hiring from September, albeit at a pace below the year-to-date average, while the unemployment rate may drop to 5 percent; the lowest since April 2008.
The yen weakened 0.9 percent this week, to 121.69 per dollar. The currency touched 122 per dollar on Thursday. That was the weakest level since Aug. 24, when Chinese shares began a two-day, 15 percent plunge that sent investors scurrying for the relative safety of havens such as the yen.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Today’s economic releases:
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BoE Gov Carney Speaks |
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AUD |
Monetary Policy Meeting Minutes |
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JPY |
BoJ Governor Kuroda Speaks |
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Upcoming Economic Events that you should be monitoring:
Monday, November 9, 2015
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EUR |
German Trade Balance (Sep) |
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20.0B |
19.6B |
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Eurogroup Meetings |
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Government Bond Auctions
Date Time Country
Nov 09 12:00 Norway Details bond auction on 11 Nov
Nov 09 15:30 Italy Announces details of BTPs/CCTeu on 12 Nov
Nov 09 N/A US Holds 3-year note auction
Nov 10 10:30 UK 0.125% 2058 I/L Gilt auction
Nov 10 N/A Holland Eur 2.0-3.0bn 0% Apr 2018 DSL
Nov 10 N/A US Holds 10-year note auction
Nov 11 10:03 Sweden Holds bond auction
Nov 11 11:15 Norway Holds bond auction
Nov 11 10:30 Germany Eur 3bn 0.25% Oct 2020 Bobl
Nov 12 10:10 Italy Auctions BTPs/CCTeus
Nov 12 10:30 UK 4.25% 2039 Gilt auction
Nov 12 N/A US Holds 30-year bond auction