Investing.com - The dollar ended Friday’s session lower against the yen, coming off a six-day high after the release of downbeat U.S. nonfarm payrolls data painted a mixed picture of the strength of the U.S. job market's recovery.
USD/JPY hit session highs of 99.96, the highest since July 25, before turning lower to settle at 98.96, 0.59% lower for the day.
The pair is likely to find support at 97.64, Thursday’s low and resistance at 99.96, Friday’s high.
The Department of Labor said the U.S. economy added 162,000 jobs in July, less than the 184,000 increase forecast by economists. June's figure was revised down to 188,000 from a previously reported 195,000.
The unemployment rate ticked down to 7.4% from 7.6% in June, due in part to more people leaving the labor force.
The data came amid growing uncertainty over the future of the U.S. central bank’s stimulus program, after the Fed said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and gave no hint of plans to taper its bond-buying program.
Despite Friday’s losses, the greenback still ended the week with a gain of 0.66% against the Japanese currency, following the release of upbeat U.S. economic data released earlier in the week.
The U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits fell by 19,000 to a seasonally adjusted 326,000 last week, the lowest level since January 2008.
Meanwhile, the Institute for Supply Management said its index of purchasing managers rose to 55.4 in July, the highest level since April 2011 and up from a reading of 50.9 in June.
The robust data came after the Commerce Department said on Wednesday that gross domestic product grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%.
That followed a report from payroll processing firm ADP, which said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.
Elsewhere, the euro was lower against the yen on Friday, with EUR/JPY closing at 131.43, down 0.04% for the day.
The European Central Bank maintained a dovish stance on interest rates on Thursday.
Speaking at the bank’s post policy meeting press conference, ECB President Mario Draghi said the central bank’s monetary policy will remain accommodative “for an extended period of time”.
Draghi’s comments came after the ECB held its benchmark interest rate at a record low 0.50% in August, in line with expectations.
In the week ahead, the U.S. is to publish data on service sector activity as well as a report on the trade balance. Thursday’s policy meeting by the Bank of Japan will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Wednesday as there are no relevant events on this day.
Monday, August 5
In the U.S., the Institute of Supply Management is to produce a report on service sector activity, a leading economic indicator.
Tuesday, August 6
The U.S. is also to release a report on the trade balance, the difference in value between imports and exports.
Thursday, August 8
The BoJ is to announce its benchmark interest rate. The announcement is to be accompanied by the bank’s monetary policy statement, which contains important insights into the economic outlook. The BoJ is to hold a press conference after the rate announcement.
Japan is also due to release official data on the current account.
The U.S. is to release the weekly government report on initial jobless claims, a leading economic indicator.
Friday, August 9
Japan is to produce official data on tertiary industry activity.
Meanwhile, China is to produce official data on consumer price inflation, which accounts for the majority of overall inflation. The Asian nation is also to release government data on producer price inflation and industrial production.
USD/JPY hit session highs of 99.96, the highest since July 25, before turning lower to settle at 98.96, 0.59% lower for the day.
The pair is likely to find support at 97.64, Thursday’s low and resistance at 99.96, Friday’s high.
The Department of Labor said the U.S. economy added 162,000 jobs in July, less than the 184,000 increase forecast by economists. June's figure was revised down to 188,000 from a previously reported 195,000.
The unemployment rate ticked down to 7.4% from 7.6% in June, due in part to more people leaving the labor force.
The data came amid growing uncertainty over the future of the U.S. central bank’s stimulus program, after the Fed said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and gave no hint of plans to taper its bond-buying program.
Despite Friday’s losses, the greenback still ended the week with a gain of 0.66% against the Japanese currency, following the release of upbeat U.S. economic data released earlier in the week.
The U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits fell by 19,000 to a seasonally adjusted 326,000 last week, the lowest level since January 2008.
Meanwhile, the Institute for Supply Management said its index of purchasing managers rose to 55.4 in July, the highest level since April 2011 and up from a reading of 50.9 in June.
The robust data came after the Commerce Department said on Wednesday that gross domestic product grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%.
That followed a report from payroll processing firm ADP, which said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.
Elsewhere, the euro was lower against the yen on Friday, with EUR/JPY closing at 131.43, down 0.04% for the day.
The European Central Bank maintained a dovish stance on interest rates on Thursday.
Speaking at the bank’s post policy meeting press conference, ECB President Mario Draghi said the central bank’s monetary policy will remain accommodative “for an extended period of time”.
Draghi’s comments came after the ECB held its benchmark interest rate at a record low 0.50% in August, in line with expectations.
In the week ahead, the U.S. is to publish data on service sector activity as well as a report on the trade balance. Thursday’s policy meeting by the Bank of Japan will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Wednesday as there are no relevant events on this day.
Monday, August 5
In the U.S., the Institute of Supply Management is to produce a report on service sector activity, a leading economic indicator.
Tuesday, August 6
The U.S. is also to release a report on the trade balance, the difference in value between imports and exports.
Thursday, August 8
The BoJ is to announce its benchmark interest rate. The announcement is to be accompanied by the bank’s monetary policy statement, which contains important insights into the economic outlook. The BoJ is to hold a press conference after the rate announcement.
Japan is also due to release official data on the current account.
The U.S. is to release the weekly government report on initial jobless claims, a leading economic indicator.
Friday, August 9
Japan is to produce official data on tertiary industry activity.
Meanwhile, China is to produce official data on consumer price inflation, which accounts for the majority of overall inflation. The Asian nation is also to release government data on producer price inflation and industrial production.