Dollar Strengthens on Solid U.S. Job Data
The dollar continued its upward momentum, reaching its highest level against the yen in a month, as solid U.S. jobs data reinforced expectations that the Federal Reserve is in no rush to cut interest rates. The yen came under heavy selling pressure after Japan’s new prime minister indicated that the country is not ready for additional rate hikes. Following his comments and a meeting with the Bank of Japan governor, the USD/JPY pair rose, and briefly touched a level not seen. Japan’s dovish stance contrasts sharply with the resilience in the U.S. economy, making the yen less attractive for traders seeking higher yields.
Read more to find out why dollar strengthens.
Disclaimer:
As the week unfolds, all eyes will be on the non-farm payrolls report and any further developments in the Middle East, both of which could have a considerable impact on market sentiment and currency movements. Risk management is advised to complement these releases closely for further indications of market trends.
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