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Sustained Dollar Strength with Limited Movement
The latest US employment statistics released last week have unveiled a noteworthy surge in non-farm payroll employment.
“Sustained Dollar Strength with Limited Movement”
The latest US employment statistics released last week have unveiled a noteworthy surge in non-farm payroll employment, exceeding expectations and bolstering the purchasing momentum for the US dollar. The USD/JPY currency pair has not only surpassed the previous week’s peak of 140.07 yen but has also climbed to 140.26 yen during the morning trading session. The Tokyo stock market has exhibited a positive performance since the morning hours, with the Nikkei Average surging by over 500 yen, further fueling the demand for the dollar and leading to yen sales.
Following the attainment of these new highs, a slight adjustment phase ensued, constraining the overall price range within a limited spectrum. The USD/JPY pair witnessed intermittent downward movements; however, each dip triggered renewed buying interest. Throughout the afternoon, the Tokyo stock market remained robust, culminating in a closing price that marked an impressive increase of 693 yen compared to the previous day. Such developments have spurred investors to divert from the yen and seek higher-yielding assets.
In the case of the EUR/USD pair, it reached approximately 1.0690 during the morning session amidst the prevailing trend of a stronger dollar. Nevertheless, a minor retracement took place, causing the pair to consolidate within the range of 1.0705.
Meanwhile, the EUR/JPY pair experienced fluctuations centered around the 150 yen level. Initially propelled to the 150 yen range due to the upward movement of USD/JPY, it subsequently declined to 149.74 yen due to adjustments in the USD/JPY pair and the sluggish performance of EUR/USD.
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