Last Week, the USDJPY closed lower as dovish comments from the US Fed and its Chairman Jerome Powell pushed Treasury yields and the US Dollar lower, making the US Dollar a less attractive asset.
With the Fed not scheduled to meet until September 21-22, Dollar – Yen traders will be left to understand US economic data for its potential impact on the Fed’s plans to begin tapering its bond stimulus purposes. Fed member comments will also have an impact on the price action as well as risk sentiment. These factors will likely have a volatile influence on the Forex pair with investors have nearly seven weeks to interpret whether the monetary stimulus can start being lifted.
While Powell focusing mainly on the labor market during last week’s press conference after the central bank’s policy statement was released on Wednesday, we feel that this week’s US Non-Farm Payrolls report, due to be issued on Friday, will carry a lot of weight over the near-term.
The report is expected to show a Employment Change of 895K new jobs in July. The Unemployment Rate is expected to fall from 5.9% to 5.7% and Average Hourly Earnings are expected to come in unchanged at 0.3%.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.