Yen Shock Hits the Dollar Just Before the U.S. Jobs Report
Speculation about yen intervention followed a sudden drop in dollar yen, yet the selling that came after was smooth and steady rather than sharp and disorderly. Markets now carry far more Bank of Japan tightening for this year than before the late July episode. A reverse carry trade sits behind it, alongside a dollar slipping against the euro, the Australian dollar, and gold.
Share this:
The Japanese yen rally looks less like Tokyo intervention and more like traders repricing Bank of Japan rate hikes before payrolls. Fawad Razaqzada, StoneX Media Market Analyst, walks through what actually drove the yen higher and what the U.S. jobs report puts at stake. Speculation about yen intervention followed a sudden drop in dollar yen, yet the selling that came after was smooth and steady rather than sharp and disorderly. Markets now carry far more Bank of Japan tightening for this year than before the late July episode. A reverse carry trade sits behind it, alongside a dollar slipping against the euro, the Australian dollar, and gold.
This content was created by an affiliate of FOREX.com and represents the views and opinions of the author/speakers, not the views and opinions of FOREX.com, StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by FOREX.com.
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
GBP/USD forecast: BoE’s hawkish hike, NFP awaited and AI concerns linger
The GBP/USD was holding near the 1.35 handle after the Bank of England raised interest rates to 4% in a unanimous 9-0 vote, against expectations of a 7-2 split. The cable has also benefited from the US dollar's slide after the midterm elections, although Friday's non-farm payrolls report still lies ahead which could have a more meaningful impact.
Silver's bullish breakout case builds as bond yields retreat
The Democratic blue wave has sent crude and Treasury yields sharply lower, improving the outlook for precious metals. With gold already breaking higher, could silver be next?
Gold Reclaims $4,000, Bulls Eye Reversal with Seasonality Tailwind
Gold futures rebound above $4,000 as falling US yields, improving sentiment and bullish seasonality raise hopes of a significant reversal.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.