USD/JPY retreated in the New York market on the 7th, closing at ¥157.76. The US employment report and movements in long-term interest rates affected the market.
USD/JPY retreated in the New York foreign exchange market on the 7th, closing at ¥157.76. It was approximately ¥0.67 lower than the previous New York close of ¥159.43, as weaker US employment-related data and market selling of the dollar led the move.
The US Department of Labor reported that nonfarm payrolls in July fell by 23,000 month on month, below expectations for an increase of 80,000. Once it became clear that figures for the previous 2 months had also been revised downward, the market fell sharply for a time. Average hourly earnings also came in below expectations, weighing on the market.
After the selling subsided, buying back became predominant, and shortly after midnight the decline had narrowed to around ¥157.99. A smaller decline in US long-term interest rates also provided support, and some market participants said buying on dips had emerged, but the currency did not recover to the ¥158 range.
The euro rebounded, with EUR/USD closing at $1.1559 and rising temporarily to $1.1581 after the US employment report came in below expectations. EUR/JPY fell for the first time in 4 trading days, closing at ¥182.38.
The Canadian dollar was bought first against the US dollar, rising temporarily to C$1.3926 against the US dollar and to ¥113.33 against the yen, following strong results in the July employment report. Some market participants also expected progress on a provisional agreement to provide a tailwind.