fxs_header_sponsor_anchor

News

USD/JPY prints day low at 128.50 USD Index loses momentum, US NFP buzz

  • USD/JPY has dropped to near 128.50 as the USD Index is struggling to extend gains above 101.55.
  • Subdued US corporate earnings have strengthened the risk-off market mood.
  • US Secretary of State Antony Blinken to meet with Chinese President Xi Jinping for a "new phase of stepped-up engagement".

The USD/JPY pair has refreshed its day’s low at 128.50 as the US Dollar Index (DXY) has sensed barricades after testing Thursday’s high around 101.55 in the Asian session. The asset is expected to display volatile moves ahead as investors are getting anxious ahead of the release of the United States Nonfarm Payrolls (NFP) data.

S&P500 futures have extended their losses amid unimpressive earnings by US corporate, portraying a risk-off market mood. The three-day winning spell by the 500-US stock basket futures has terminated for now. Bullish action shown by the USD Index is facing exhaustion after reaching near 101.55, however, the upside bias is intact.

Contrary to the risk-aversion theme, the demand for US government bonds is accelerating vigorously amid deepening signs of inflation softening. The 10-year US Treasury yields have dropped further below 3.37%.

Investors are keenly awaiting the release of the US NFP data for further guidance. According to the estimates, the US economy has added fresh 185K jobs vs. the former release of 223K. The United States labor market is resilient as the demand for labor force is exceeding expectations. Therefore, the employment cost index data could deliver a surprise release ahead. The Unemployment Rate is expected to display an escalation to 3.6% from the prior release of 3.5%.

The headlines conveying US Secretary of State Antony Blinken's meeting with Chinese President Xi Jinping in Beijing could provide strength to the risk-on mood. This could be a "new phase of stepped-up engagement" between the two countries, after further complications to diplomatic relations arising from the Covid-19 pandemic, as reported by Financial Times.

On the Japanese Yen front, Jibun Bank Services PMI (Jan) dropped marginally to 52.3 from the former release of 52.4.

Meanwhile, former Bank of Japan (BOJ) Deputy Governor Hiroshi Nakaso has taken up a post heading a financial conference under the Asia-Pacific Economic Cooperation (APEC) advisory council as reported by Reuters. Former BoJ Deputy Governor is seen as a leading contender to take over incumbent Haruhiko Kuroda, whose term ends on April 8.

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.