Markets started the new trading week rather quietly as investors digested the US non-farm payrolls data from last Friday and prepare for the next highlight of the week – the European Central Bank policy meeting this Thursday.
The dollar was weaker against the yen in Asian trading today, giving back gains made after the strong US jobs number. The greenback had initially gained on Friday in a knee-jerk reaction to the upbeat non-farm payrolls (NFP) data which showed solid job growth of 242,000. But the disappointing fall in hourly earnings sent the dollar into reverse.
USD/JPY was down 0.2 percent at 113.605 yen after rising briefly to 114.25 on Friday following the employment report release.
The broadly weaker dollar helped drive the euro back above the key $1.10 level on Friday but EUR/USD eased down to around $1.0992 in Monday’s Asian trade. Investors will likely be cautious buying the single currency head of the European Central Bank(ECB) meeting on Thursday. The ECB is widely expected to cut rates and increase QE, which would be a negative for the euro.
AUD/USD eased modestly in early thin Asian trading to $0.7413, trimming some of last week’s 4.4 percent post- Australian GDP rally. China is very much an influence on the aussie, since China is a major trading partner for Australia. Over the weekend China announced it expects the Chinese economy to grow by at least 6.5 percent over the next five years. This would be the slowest pace of growth in over 20 years.
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