The ongoing US debt ceiling talks will keep everyone on their toes until the deal is passed, but USDJPY may get extra volatility on Friday if nonfarm payrolls shed more light on what the Fed’s June policy decision will be. Eurozone’s CPI inflation figures might challenge the exciting bull run in EURJPY, while Australia’s monthly inflation report and China’s business PMI surveys could make AUDUSD important to watch as well.
US Nonfarm payrolls –> USDJPY
The US labor market has been a source of strength for America, playing down the odds of a painful recession. Although analysts have kept their forecasts low once again, another upbeat report on Friday could message investors that the rate hike cycle is not over yet. USDJPY could print new higher highs in the aftermath, especially if the debt ceiling deal is passed this week. Yet, a decisive close above 141.50 might be necessary to bolster buying appetite.
US nonfarm payrolls are expected to arrive at 190k in May versus 253k in April.
Eurozone CPI –> EURJPY
Unlike other important euro pairs, EURJPY has been on the rise over the past two weeks, trading slightly below April’s 15-year high of 151.60. Given the BoJ’s super accommodative stance, the pair might be driven by ECB rate projections this week. Wednesday’s German CPI inflation could provide some clues on what to expect from Eurozone’s CPI data on Thursday. Should the data point to additional rate hikes, the pair may enter the 152.00 zone.
Forecasts suggest a sizeable slowdown to 6.3% y/y from 7.0% previously.
Australian CPI –> AUDUSD
The Reserve Bank of Australia caught traders by surprise recently, saying that it’s not done with rate increases. Despite that, AUDUSD could barely gain ground, falling to a six-month low last Friday. The monthly weighted CPI figure for April could endorse the negative direction in the market if a forecast for an almost stable inflation of 6.4% is correct.
Retail sales and private new capital expenditures data may not be great either on Thursday. Hence, the aussie may struggle to find support, unless the RBA Governor endorses the case for a new rate hike and China’s business PMI figures boost hopes for stronger global demand.
The ongoing US debt ceiling talks will keep everyone on their toes until the deal is passed, but USDJPY may get extra volatility on Friday if nonfarm payrolls shed more light on what the Fed’s June policy decision will be. Eurozone’s CPI inflation figures might challenge the exciting bull run in EURJPY, while Australia’s monthly inflation report and China’s business PMI surveys could make AUDUSD important to watch as well.
US Nonfarm payrolls –> USDJPY
The US labor market has been a source of strength for America, playing down the odds of a painful recession. Although analysts have kept their forecasts low once again, another upbeat report on Friday could message investors that the rate hike cycle is not over yet. USDJPY could print new higher highs in the aftermath, especially if the debt ceiling deal is passed this week. Yet, a decisive close above 141.50 might be necessary to bolster buying appetite.
US nonfarm payrolls are expected to arrive at 190k in May versus 253k in April.
Eurozone CPI –> EURJPY
Unlike other important euro pairs, EURJPY has been on the rise over the past two weeks, trading slightly below April’s 15-year high of 151.60. Given the BoJ’s super accommodative stance, the pair might be driven by ECB rate projections this week. Wednesday’s German CPI inflation could provide some clues on what to expect from Eurozone’s CPI data on Thursday. Should the data point to additional rate hikes, the pair may enter the 152.00 zone.
Forecasts suggest a sizeable slowdown to 6.3% y/y from 7.0% previously.
Australian CPI –> AUDUSD
The Reserve Bank of Australia caught traders by surprise recently, saying that it’s not done with rate increases. Despite that, AUDUSD could barely gain ground, falling to a six-month low last Friday. The monthly weighted CPI figure for April could endorse the negative direction in the market if a forecast for an almost stable inflation of 6.4% is correct.
Retail sales and private new capital expenditures data may not be great either on Thursday. Hence, the aussie may struggle to find support, unless the RBA Governor endorses the case for a new rate hike and China’s business PMI figures boost hopes for stronger global demand.
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