- The dollar slumped 0.9% on the day and hit a one-month low at 146.55.
- US payrolls rise, but unemployment rises and wages slow.
- USDJPY: More likely to top out at 155 than 160 — MUFG.
The US dollar tries to break back above 147.00 in the US afternoon session to trim losses after losing almost 0.9% on the day, hitting a one-month low at 146.55.
The dollar sinks after the US non-farm payrolls report.
The Dollar accelerated its downtrend on Friday, following the release of a mixed US NFP report. Job creation remains strong, as private non-farm payrolls increased by 261,000 in October, beating expectations of 200,000, and September figures were revised up to 315,000, from 4,000 previously estimated.
Elsewhere, the jobless rate has risen to 3.7% from 3.5% in September, above the consensus of 3.6%, while hourly earnings rose 4.7% in October. from 5% in September. These numbers suggest labor market conditions may be starting to soften and have revived the possibility of a shorter rate hike in December.
USDJPY: Ceiling at 155, with 160 a long way off — MUFG
From a broader perspective, MUFG analysts anticipate that the USDJPY top may not be too far away: ” We anticipate a short-term top of USDJPY at 155, given that it has already broken above 150 once, it is still hovering around 148, and considering the speed of its ascent in the last six months (…) The high of April 2 The 1990 rate of 160.35 could be in the offing if the Fed intensifies its communication with the market and a terminal rate of 5.5% to 6% is in sight, but we don’t expect that at the moment.”
Technical levels to watch
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
