Dollar weakness led the way in the New York market on the 7th, with USD/JPY closing at ¥157.76. Weakness in the U.S. employment report and slowing wage growth weighed on the dollar, while the euro rebounded and the Canadian dollar rose broadly.
In the New York foreign exchange market on the 7th, USD/JPY fell back, closing at ¥157.76. This represented a dollar decline of approximately ¥0.67 from the previous business day's New York close of ¥158.43, as the U.S. employment report prompted dollar selling. Figures for the previous 2 months were also revised downward, while average hourly earnings came in below expectations, weighing further on the market.
USD/JPY at one point plunged to ¥156.68, but after the selling reversed, buying back the dollar gained the upper hand and the decline narrowed to around ¥157.99 toward the end of the session. Lower long-term U.S. Treasury yields also provided support. While some market participants expect the gradual yen depreciation and dollar appreciation to continue, caution over possible further intervention to buy yen remained.
Among European currencies, the euro rebounded, closing at $1.1559. Dollar selling intensified temporarily following the weaker-than-expected U.S. employment report, pushing the euro up to $1.1581 before its gains stalled. EUR/JPY fell back for the first time in 4 business days, closing at ¥182.38.
The Canadian dollar strengthened broadly, supported by the July employment report coming in above market expectations. It rose to 1.3926 against the U.S. dollar, ¥113.33 against the yen and around 1.6097 against the euro. Reports also included information that “Canada and the United States are holding interim talks aimed at reducing tariffs,” and market participants said progress in the talks would support the CAD.
The day's reference ranges were given as ¥156.68–¥158.57 for USD/JPY, $1.1518–$1.1581 for EUR/USD and ¥181.33–¥182.69 for EUR/JPY.