Disappointing US economic data were the reason of the greenback’s weakening against the Japanese yen. US economy only added 38,000 jobs in May, which was way below market expectation at 162,000 addition. This data pushed down the sentiment of rate hike in June.
The probability of rate hike in June was 21%, but after the disappointing US Non-Farm Payrolls data the probability fell ti 6%. As for July rate hike, the probability fell to 47% from 58%.
Japan Cabinet Secretary, Yoshihide Suga said that if necessary, a move will be taken in order to ease speculative movement in money market. Mr. Suga also said that stability in money market is very important.
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Eko Trijuni has been trading forex full time since 2005. He is now the Head Market Analyst for FOREXimf.com. His specialty is technical analysis.