The U.S. dollar showed strengthening against the Yen in early trading session Monday (08/08/2016), extending his acquisition after reports the US exceed the NFP last week. The Non Farm Payroll numbers rose 255.000 in July exceeded the expectations of the 180.000 estimated by economists Reuters. As a result, expectations of u.s. economic growth as well as the probability of a rise in the interest rates the US Federal Reserve is supported.
USD/JPY strengthened 102.13 yen, rose 0.3 percent in early Asian trading session today, continue strengthening since late last week from 100.68. According to strategist of Daiwa Securities, Yukio Ishizuki, U.S. payroll data injecting risk interest to market sentiment and complicate motion yen for now.
On the other hand, the Euro SAG as low as 1.1046 per U.s. dollar on Friday, the lowest level in a week. In the morning session of this commercial sata news written, the EUR/USD positions 1.1002, tend to be flat from the level of trade in the American session last week. While the GBP/USD, falling to the lowest level of 1.3021 range, since the beginning of July, and last traded at 1.3078 position.
The index tracked the U.S. dollar strengthened against six major currencies with a high level of 96,522 on Friday, up 1.6 percent from the low level of five weeks in the number 95,003 which touched on Tuesday.
The Fed Squeezed Amid Projections Of Other Central Banks Monetary Easing
However, a rise in U.S. interest rates still have to face the challenge, among others, the uncertainty of Brexit and a slowdown in China. The Fed funds rate futures put up an estimated 20 percent increase in opportunities for interest rates in September and less than 50 percent chance for a rise in interest rates at the end of the year. "The market thinks that it would be difficult for the US Federal Reserve to raise interest rates while other countries in the world is searching for loopholes to loosen monetary policy," said Ishizuki cited by Reuters.
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