How to trade the JPY?
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Greenback dives as American jobs report tames rate hike bets
On Monday, the evergreen buck dived versus a currency basket right after the fresh American jobs report disclosed that while jobs surge remained firm, spurring risk appetite, wage surge speeded down, thus taming hopes for a faster tempo of rate lifts in 2018.
The US dollar index, gauging the American currency’s strength versus a group of six major rivals, hit 89.94, heading south 0.18% for the day.
On Friday, the Labor Department reported that the American economy generated 313,000 jobs in February, although average hourly earnings tacked on by 0.1% last month.
The firm jobs surge spurred global risk appetite, and the slowdown in wage surge dampened hopes for four rate lifts by the Fed in 2018, which is negative for the evergreen buck that tends to be more attractive to yield-seeking market participants when borrowing costs go up.
The common currency inched up, with EUR/USD soaring 0.18% being worth 1.2329.
Leaps in the common currency were held in check right after European Central Bank Governor Mario Draghi dared to downplay a move to cease the easing bias from the previous week’s rate statement and also issued a warning that growing protectionism threatened the outlook for surge in the euro zone.
The British pound also gained ground versus the US currency, with USD/GBP adding 0.17% being worth 1.3877.
Versus the Japanese yen, the evergreen buck declined, with USD/JPY sliding 0.24% hitting 106.54.
Demand for Japan’s currency was spurred amid worried over a soaring cronyism scandal closely connected with the Japanese prime minister as well as his wife involving the sale of public land.
The safe haven yen is prone to going up in times of market instability.
Additionally, the risk sensitive Australian as well as New Zealand dollars grew too, with AUD/USD soaring 0.19% reaching 0.7862 and NZD/USD rallying 0.43% being worth 0.7310.
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