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US Dollar Tight against Japanese Yen ahead of US Employment Stats
Published: 8 Mar at 10 AM Tags: Dollar Exchange Rate, Currency Exchange, Yen Exchange Rate, UK, Exchange Rates, Economy,
US Dollar sees Limited Demand as Fed Rate Hike Odds Hang in the Balance
The US Dollar has trended tightly against the Japanese Yen at a rate of 113.93 today, ahead of a major US data release.
This will consist of the Adp employment change for February, which has been forecast to show a shift from 246k employed persons in January to 190k in February.
The data is considered especially high-impact because of the context of the Federal Reserve, the US’s central bank; economists have been increasingly seeing a Fed interest rate hike in March as a likely prospect.
As today’s employment figures are considered significantly high-impact, however, they could change the Fed’s course and prevent an imminent rate hike if they are significantly worse than forecast.
Other US Dollar-influencing news later in the week will cover non-farm payrolls in February, along with the unemployment rate for the same month.
Given that unemployment is expected to drop from 4.8% to 4.7%, it could trigger a late-in-the-week rise for the USD JPY exchange rate.
Japanese Yen Trends Narrowly against the US Dollar on National Growth Stats
The Yen has been in a similar situation to the US Dollar today, failing to make much headway to due national economic concerns.
In Japan’s case, the latest key news has covered economic growth; in Q4, the final GDP figures have printed 0.3% on the quarter and 1.2% on the year.
Although worse than forecast, these figures still show that the economy has been expanding for four consecutive quarters, a 3-year record.
Economists have been outlining what this means for the Japanese economy - Tokai Tokyo Research Chief Economist Hiroaki Muto states;
‘An export-led recovery will probably continue, which is the typical pattern of the Japanese economy. The strength in investment isn’t coming from strong domestic demand. It’s basically foreign demand. Production of exports is picking up, which pushes up business spending’.
This apparent over-reliance on foreign activity raises questions about how stable Japan’s continued economic recovery is, which accounts for the lack of current interest in the Yen.
The next major Japanese news will be Thursday’s manufacturing figure for Q1, which could boost the Yen as it has been predicted to rise from 7.5 points to 8.4.
The US Dollar has trended tightly against the Japanese Yen at a rate of 113.93 today, ahead of a major US data release.
This will consist of the Adp employment change for February, which has been forecast to show a shift from 246k employed persons in January to 190k in February.
The data is considered especially high-impact because of the context of the Federal Reserve, the US’s central bank; economists have been increasingly seeing a Fed interest rate hike in March as a likely prospect.
As today’s employment figures are considered significantly high-impact, however, they could change the Fed’s course and prevent an imminent rate hike if they are significantly worse than forecast.
Other US Dollar-influencing news later in the week will cover non-farm payrolls in February, along with the unemployment rate for the same month.
Given that unemployment is expected to drop from 4.8% to 4.7%, it could trigger a late-in-the-week rise for the USD JPY exchange rate.
Japanese Yen Trends Narrowly against the US Dollar on National Growth Stats
The Yen has been in a similar situation to the US Dollar today, failing to make much headway to due national economic concerns.
In Japan’s case, the latest key news has covered economic growth; in Q4, the final GDP figures have printed 0.3% on the quarter and 1.2% on the year.
Although worse than forecast, these figures still show that the economy has been expanding for four consecutive quarters, a 3-year record.
Economists have been outlining what this means for the Japanese economy - Tokai Tokyo Research Chief Economist Hiroaki Muto states;
‘An export-led recovery will probably continue, which is the typical pattern of the Japanese economy. The strength in investment isn’t coming from strong domestic demand. It’s basically foreign demand. Production of exports is picking up, which pushes up business spending’.
This apparent over-reliance on foreign activity raises questions about how stable Japan’s continued economic recovery is, which accounts for the lack of current interest in the Yen.
The next major Japanese news will be Thursday’s manufacturing figure for Q1, which could boost the Yen as it has been predicted to rise from 7.5 points to 8.4.
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Source: moneytransfer.co.uk