USD/JPY prints day low at 128.50 USD Index loses momentum, US NFP buzz – Crypto News – Crypto News
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USD/JPY aims to re-test 141.00 as odds of BOJ's further intervention escalate, US PMI eyed USD/JPY aims to re-test 141.00 as odds of BOJ's further intervention escalate, US PMI eyed

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

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  • 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 corporates, portraying a risk-off market mood. The three-day winning spell by the 500-US stocks Basket futures have 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 yield has 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 the Financial Times.

On the Japanese Yen front, the Jibun Bank Services PMI (Jan) dropped marginally to 52.3 from the earlier 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 Kurodawhose term ends on April 8.

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