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USD/JPY trades around 157.65 on Friday at the time of writing, down 0.28% on the day. The pair briefly dropped to 156.95 following the release of the United States (US) employment report before erasing the entire move and returning to pre-release levels. The rebound is mainly driven by renewed weakness in the Japanese Yen (JPY), while the US Dollar Index (DXY) remains close to its daily lows.The recovery extends the dip-buying pattern seen around the 157.00-156.50 area since mid-September. USD/JPY’s resilience is particularly notable as Friday’s US economic data provides little support to the Greenback.The US Bureau of Labor Statistics…

Royal Bank of Canada analysts review Canada’s September labour report, the first full dataset since U.S. Section 338 tariffs took effect. They estimate around 0.4% of Canada’s GDP and employment is tied to tariff-listed US demand. The bank expects tariffs to stall, but not reverse, labour market progress, with modest job gains and the unemployment rate holding near 6.4%.Jobs data under new U.S. tariffs”Canada’s labour report for September on Friday will be the first full month of jobs data since U.S. Section 338 tariffs took effect on Aug. 22, offering important clues on their impact.””Overall, we estimate that about 0.4%…

The Euro (EUR) reverses previous daily gains against the British Pound (GBP) on Friday, diving to fresh two-and-a-half-month lows just above 0.8500, and is set to show a more than 1% weekly decline. A toxic mix of surging Eurozone inflation, high Oil prices and escalating borrowing costs in France is keeping investors away from the Euro, which shows the weakest weekly performance among the G8 majors.Data released by Eurostat earlier on Friday revealed that the Eurozone’s preliminary Harmonised Index of Consumer Prices (HICP) accelerated in September to three-year highs, boosted by the higher costs of energy stemming from the Middle…

Deutsche Bank’s Early Morning Reid team reports that the S&P 500 broke a three-day losing streak, helped by a pullback in US Treasury yields and more dovish FOMC commentary. Despite strong US data and earlier upward pressure on yields, markets now price a much lower probability of an October Fed hike, supporting US equities into the upcoming jobs report. Equities supported by lower hike odds “Whilst European assets struggled yesterday, there was a very different tone in the US.” “Moreover, US equities recovered from their earlier sell-off, with the S&P 500 (+0.19%) ending a run of three consecutive declines, whilst…

The USD/JPY pair edges lower during the Asian session on Friday, currently trading below the 158.00 mark, though it remains near the weekly high touched the previous day.Data released earlier today showed that consumer inflation in Tokyo – Japan’s capital city – accelerated in September. This comes on top of the Bank of Japan’s (BoJ) Summary of Opinions, which showed that policymakers debated the need for additional rate hikes to adjust accommodative financial conditions, and offers some support to the Japanese Yen (JPY). Adding to this, traders remain on high alert amid speculation that authorities will step in again to…

The rupee dived the most in more than two months on a day India’s prime equity gauges posted their longest losing run in a quarter century, falling half a percentage point to 96.3150 against the dollar.Rising US bond yields dented emerging market currencies, evident in the sharp climb in the dollar index to 101.9.The rupee closed the previous session at 95.83 a dollar. Its lowest close so far is 96.96 to a dollar, on May 20. It breached the psychological 96-level twice in three days. Source

The US dollar headed for its third straight week of gains on Friday, perched at a 17-month high as a bond market rout pushed borrowing costs across the globe to multi-decade peaks in the face of inflationary fears over higher oil prices.Investors were reeling from a steep global bond sell-off on Thursday that sent yields on benchmark US 10-year Treasuries to 5.344%, their highest since 2002, ahead of a US jobs report that could influence the near-term policy outlook.The 10-year yield was last at 5.249% in early trading on Friday while the rest of the bond market also steadied.The euro…

The US President Donald Trump administration told European allies to release diesel from national emergency stockpiles, Bloomberg reported on Thursday.This move is seen as potentially averting a ban on US exports of the critical fuel. The White House said that additional diesel from Europe would increase global supplies and lower prices. One source said Washington wants the European Union (EU) to release 120 million barrels of diesel over six months“Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions” to energy markets, Treasury Secretary Scott Bessent said Thursday on X.…

USD/JPY reverses its earlier gains on Thursday as traders hesitate to push the pair higher amid the risk of intervention by Japanese authorities. This allows the Japanese Yen (JPY) to regain some ground even as the US Dollar (USD) climbs to a fresh year-to-date high. At the time of writing, USD/JPY trades around 157.95 after touching an intraday high near 158.44.The US Dollar remains firmly supported by elevated US Treasury yields and resilient economic data. The US Dollar Index (DXY), which tracks the Greenback against six major currencies, trades near 102.13, while the benchmark 10-year US Treasury yield holds around…

Bank of England (BoE) policymaker Catherine Mann argued on Thursday that they can’t rely on risk premia to do the work of monetary policy and added that they need to raise the bank rate, per Reuters.BoE’s Mann flags need for higher rates despite tighter conditionsFXS Speechtracker assigns this speech a 9.4/10, notably above BoE’s Mann historic average of 8.1/10, signaling a stronger-than-usual policy signal. The insistence that the Bank of England “needs to raise bank rate” and cannot rely on risk premia to substitute for monetary tightening marks a clear hawkish shift, as tighter financial conditions are framed as problematic…