In a world where a weak employment report can undermine the US Dollar, the USD/JPY rate is approaching its yearly high ahead of the NFP report. If the report is negative, the Japanese Yen will strengthen against the USD, and this will make US goods more expensive for Japanese consumers. Conversely, if the report is positive, the USD/JPY rate would rise, as the Japanese currency is a major trading partner for the USA.
However, the US dollar is holding its ground against the Japanese Yen ahead of the NFP report, as investors have had to reset their expectations for the monetary policy outlook in recent weeks. Economists have retreated from bets on a rate hike next October, saying it is unlikely to happen until at least 2022. At the same time, Fed Chair Jerome Powell said that he had no immediate plans to raise borrowing costs and has tapered back his monthly asset purchases to $15 billion.
The nonfarm payrolls report is always an important indicator for the currency markets. The nonfarm payrolls figure is a measure of the number of new jobs in the corporate sector in the U.S. and is a leading indicator for the overall employment situation in the country. As such, currency traders and investors closely follow the nonfarm payrolls report and its impact on the USD/JPY rate.
The NFP report is released at 8:30 a.m. Eastern Time (EST) and 1:30 p.m. GMT on April 15. The USD/JPY rate is likely to move higher and lower after the release. It is best to wait until the NFP report is released before entering the market. If the market goes down and moves higher or lower than the NFP report, consider buying or selling.
The Nonfarm Payrolls report is a critical indicator for the US economy and the USD/JPY rate rises. A steadily expanding number of nonfarm jobs will be positive for the US economy and support the USD/JPY rate.
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The nonfarm payroll report is a crucial economic report that will set the course for the rest of the month. Most investors are hoping for a more positive outlook in the August report. According to Goldman Sachs analysts, the report is expected to show 300K new jobs and an unemployment rate stay around 3.5%.