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3 Apr 2014
USD/JPY remains consolidated near 10-week highs
FXStreet (London) - USD/JPY remains consolidated near to 10-week highs in advance of tomorrow’s non-farm payroll numbers.
Scrutiny will be on the employment component of the Institute for Supply Management’s US non-manufacturing index at 15:00 GMT. It is expected that we will see a rebound in the headline figure from 51.6 to 53.5, however the employment component will be under scrutiny after disruptive US weather conditions and below-normal temperatures were blamed for pushing the it down to 47.5 percent, with any number below 50 indicating a contraction.
Demand returning after poor weather
The trend through this week’s US data and surveys has been for a return to demand after poor weather hampered US economic activity at the beginning of 2014. Optimism runs high ahead of tomorrow’s non-farm payrolls when consensus expectations are for 200k new jobs.
With nothing on the schedule overnight to move the JPY leg, it is likely that we will see the pair remain in consolidation territory until tomorrow’s announcement.
USD/JPY is currently trading at JPY104.0110, dipping below its earlier 10-week high of JPY104.0670. The pair remains up 0.17 percent on the session.
Scrutiny will be on the employment component of the Institute for Supply Management’s US non-manufacturing index at 15:00 GMT. It is expected that we will see a rebound in the headline figure from 51.6 to 53.5, however the employment component will be under scrutiny after disruptive US weather conditions and below-normal temperatures were blamed for pushing the it down to 47.5 percent, with any number below 50 indicating a contraction.
Demand returning after poor weather
The trend through this week’s US data and surveys has been for a return to demand after poor weather hampered US economic activity at the beginning of 2014. Optimism runs high ahead of tomorrow’s non-farm payrolls when consensus expectations are for 200k new jobs.
With nothing on the schedule overnight to move the JPY leg, it is likely that we will see the pair remain in consolidation territory until tomorrow’s announcement.
USD/JPY is currently trading at JPY104.0110, dipping below its earlier 10-week high of JPY104.0670. The pair remains up 0.17 percent on the session.