USD/JPY continues to have an uneventful week. In Wednesday’s North American session, the pair is trading at 111.71, down 0.16% on the day. On the release front, there are no major Japanese events. In the U.S., ADP nonfarm payrolls dipped to a 3-month low. The indicator fell to 183 thousand, down from 213 thousand in the previous release. On Thursday, the U.S. releases unemployment claims and Japan publishes household spending and fourth-quarter GDP.

In the U.S., the focus will be on February employment numbers for remainder of the week. ADP payrolls was a disappointment, and the official nonfarm payrolls could follow suit, as the key indicator is expected to slide to 185 thousand, after a strong gain of 304 thousand in January. However, analysts are expecting better news from other key numbers – wage growth is expected to improve to 0.3% and the unemployment rate is projected to dip to 3.9%.

The bitter between the U.S. and China may not be over, but there are clear signs that tensions between the two super-economies have eased considerably. Risk appetite remains strong, which could weigh on the yen, a safe-haven asset. At the same time, a breakthrough would herald a new trade relationship between the U.S. and China and would likely boost the lethargic Japanese economy. China is a key trading partner for Japan, and the slowdown in China has hurt the Japanese manufacturing and export sectors.

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