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HISTORICAL DETAILS
% Change
1 Wk -0.06%
1 Month 0.49%
3 Months -3.39%
6 Months -2.37%
1 Year -8.61%
52 WEEK
High 89.16
Low 76.25
BLOOMBERG MEDIAN FORECASTS
Q2 2011 83.00
Q3 2011 83.00
Q4 2011 85.00
Q1 2012 87.00
DAILY DETAIL
USD/JPY was victim to a collapse in bond yields on Friday after the non-farm payroll report came out significantly lower than forecast. Expectations were elevated going into the release, with rumours circulating around trading floors that President Obama had called a press conference to gloat over a 200,000 job gain, Reuters said. This saw US ten-year yields push up to 3.18%, with USD/JPY rallying to 81.49. It was a classic case of ‘up the escalator, down the lift,’ as yields came tumbling down to 3.00% and USD/JPY fell to a low of 80.49 after the jobs report missed even the most bearish of economists’ predictions. The pair had been getting some traction and traders were starting to warm to the price action, so this setback has surely seen a lot of patience lost and funds deployed into other pairs. USD/JPY is a slow-moving beast, and with the Federal Reserve seemingly an age away from hiking rates, the pair will struggle to see strong upside going forward. However, an improvement in US data will see modest capital flow into the USD. This week, the eyes of the trading world will be focused on Europe, notably Italy; however a key event will be a speech from Ben Bernanke this Friday, on signs that the Reserve Bank could shift economic policy following the payrolls data. There is also a press conference scheduled tomorrow morning, at which President Obama will provide details of his two day meeting with congressional leaders over the debt ceiling. Chris Weston, Australia
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