Yen Rises on Soft US Jobs Data, Commerzbank Says
Commerzbank analysts attribute the yen's recent strength to weaker-than-expected US non-farm payrolls and reduced expectations for Fed rate hikes, which pressured the dollar and drove USD/JPY lower.
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Weaker US labor market data is boosting the Japanese yen, according to Commerzbank strategists Charlie Lay and Dr. Henry Hao. The analysts note that disappointing non-farm payrolls figures have dampened expectations for further Federal Reserve rate hikes, weighing on the dollar and supporting the yen.
USD/JPY fell sharply in response as markets now price a smaller cumulative rate increase by the Fed by year-end. Speculation about potential FX intervention also contributed to the move, the strategists added.
Source: FXStreet Forex News