Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Yen May Fall as Market Mood Brightens After US Jobs Data

Yen May Fall as Market Mood Brightens After US Jobs Data

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • US Dollar extending Friday’s drop after wage growth data disappoints
  • Aussie, NZ Dollars rise as worries about steep Fed hike path dissipate
  • Japanese Yen may decline as risk appetite improves across the markets

The US Dollar traded broadly lower in Asia Pacific trade are regional markets took their turn responding to last week’s release of official employment data for February. Perhaps most notably, the report showed that US wage inflation fell short of expectations, hinting that the prior month’s surge might have been a one-off. That cooled worries about a steeper Fed rate hike cycle than the markets have accounted for.

Beyond the greenback, ebbing concerns about aggressive stimulus withdrawal have buoyed risk appetite. The MSCI Asia Pacific equities benchmark has added over 1 percent, echoing Friday’s rosy outing on Wall Street. Not surprisingly, sentiment-geared currencies like the Australian and New Zealand Dollars are following shares higher, with the higher-yielding Kiwi tellingly leading the way.

Looking ahead, a lackluster offering of European and US scheduled event risk may keep risk appetite trends at the forefront. Futures tracking the FTSE 100 and S&P 500 stock indexes are pointing convincingly higher before London and New York come online, hinting that established trade patterns may continue to find follow-through. That may translate into weakness for the heretofore resilient Yen before the day is through.

Get help building confidence in your FX trading strategy with our free guide!

Asia Pacific Trading Session

Yen May Fall as Market Mood Brightens After US Jobs Data

European Trading Session

Yen May Fall as Market Mood Brightens After US Jobs Data

** All times listed in GMT. See the full economic calendar here.

FX TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

To receive Ilya's analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES