USD/JPY comes off three-month low Following Jobs Report
- Last Updated on 06 February 2012
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The better than expected US Non-Farm Payrolls last Friday, resulted in positive gains for the USD to close out the week. 243K jobs were added to US payrolls in January, in yet another sign that the American economic recovery is progressing. The unemployment rate dropped to 8.3% percent as a result, its lowest level in almost three years. The USD/JPY closed out the week on a bullish note at 76.58 after hitting a three-month low on Thursday. As a result, fears of a Bank of Japan market intervention were temporarily calmed.
Turning to this week, both European and US news will likely determine whether the dollar can extend its bullish trend. On the European front, Greece's inability to reach a deal with its creditors has raised concerns that the country could default on its debt. Traders will want to continue paying attention to any announcements out of the euro-zone. If a Greek deal is not finalized in the coming days, the USD could see further gains as a result.
With regards to US news, the most significant event at the moment will likely be a speech from Fed Chairman Bernanke on Tuesday. Should Bernanke indicate that the Fed may raise interest rates earlier than previously thought, the dollar could see gains during mid-week trading. At the same time, if Bernanke voices any pessimism regarding the US economic recovery, the greenback could come under renewed pressure.