Home Forex Market News Asian Session – Yen fails to capitalize on soft US employment report

Asian Session – Yen fails to capitalize on soft US employment report

The Japanese yen was the main loser of the day, as a trend of weaker economic data and doubts about the durability of Japan’s economic recovery have intensified lately, leading to yen sales. This kept the yen from staging a more substantial rebound following the comparatively soft July employment report out of the United States on Friday. Dollar / yen was at 102.69 compared to 102.54 on Friday and euro / yen climbed towards the familiar 138 mark at 137.85.

Nonfarm payrolls increased by 209 thousand during July, against expectations of a 233 thousand gain, while the unemployment rate climbed to 6.2%. Wages, as shown by the hourly average earnings, were flat month-on-month. The next important data point for the dollar will be tomorrow’s ISM services survey.

Euro / dollar held above 1.34 at 1.3421, as the oversold euro took advantage of the soft US labor numbers to recover some of its losses. The European Central Bank meeting on Thursday will be a key risk event for the single currency as the ECB will have to say what it plans to do about the fact that Eurozone July inflation fell to a 5-year low of 0.4% on Thursday.

The Australian dollar managed to rebound off the 93 cent level against the US dollar to trade at 0.9313, after stronger-than-expected retail sales for June. Retail sales increased 0.6% month-on-month against expectations of a 0.4% increase. Data out of Australia have been mixed lately and the Reserve Bank of Australia meeting tomorrow will provide clues as to how the central bank views the overall situation.

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