Yen Trims Weekly Gain as Dollar Rises Before US NFP
The yen dropped, still headed for its best week since November, as the dollar traded mixed versus its major peers ahead of US jobs data.
The Bloomberg Dollar Spot Index climbs 0.1%, down 0.7% on a weekly basis; economists estimate non-farm payrolls increased 175,000 in January, while a whisper number among Bloomberg terminal users is 199,000
USD/JPY rises 0.5% to 152.13, set to snap a four-day drop; it’s down 2% this week, as faster-than-expected wage growth and hawkish comments from BOJ officials fueled speculation that the central bank may raise interest rates sooner than markets anticipated.
Demand for yen topside remains in play this week; hedge funds rollover USD/JPY exposure into CHF/JPY down to relative cheapness at the front-end of the curve, Europe-based traders say
Knock-in options and put spreads are favorite expressions of yen-bullish bias.
CHF/JPY down 1.5% this week to 167.751; it fell to 166.777 earlier, lowest since Sept. 20.
EUR/USD swing between gains aqnd losses to trade little changed at 1.0382; ECB will scrutinize economic data when deciding how far to lower borrowing costs, and won’t spend too much time thinking about the so-called neutral rate that’s often touted as a guiding star, Chief Economist Philip Lane said.
GBP/USD pares gains to trade 0.1% higher at 1.2450; despite market’s dovish take on the latest BOE decision, cable is up 0.4% on a weekly basis.
Focus turns to BOE Chief Economist Huw Pill who will speak at the National MPC Agency briefing later.
Source : Bloomberg
