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USD/JPY Holds Sub 161.00 Post US NFP, Labour Cash Earnings Out Today

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USD/JPY tracks near 160.80 in early Monday dealings, little changed for the session so far. We haven't seen much spill over from lower EUR levels (off 0.20%) post the shock polling results which projects the left leaning New Popular Front as the winner of the legislative elections in France (albeit short of an outright majority).

  • Yen gained 0.33% for Friday's session, as broader USD sentiment faltered post the payrolls print (downward revisions and the tick up in the unemployment rate offset a modest headline beat).
  • The BBDXY lost 0.18%, the DXY down 0.24%. US cash Tsy yields were down 5-10bps across the curve, led front end, as Fed rate cut expectations rose post the data prints.
  • For USD/JPY, intra-session Friday lows were at 160.35. This still leaves us above the 20-day EMA (159.51), while trend line support sits back at 157.60. Hence the current pullback is considered corrective.
  • Today on the data calendar we have May labour cash earnings. The market expected a nominal result of 2.1%y/y, prior 1.6%, while for real earnings, -1.2%, versus -1.2% prior. The sample base measures are expected to print above 2% y/y. Also out is May BoP, current account data, along with bank lending and the Eco watchers survey.
  • Local media is reporting that Tokyo Governor Yuriko Koike likely won the vote to governor the capital for a third term. She was backed by the incumbent LDP party (which supported her). See this link.
  • Finally, note the following option expiries for NY cut later: 157.25($1.8bln), Y160.00($624mln), Y161.00-15($755mln).
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USD/JPY tracks near 160.80 in early Monday dealings, little changed for the session so far. We haven't seen much spill over from lower EUR levels (off 0.20%) post the shock polling results which projects the left leaning New Popular Front as the winner of the legislative elections in France (albeit short of an outright majority).

  • Yen gained 0.33% for Friday's session, as broader USD sentiment faltered post the payrolls print (downward revisions and the tick up in the unemployment rate offset a modest headline beat).
  • The BBDXY lost 0.18%, the DXY down 0.24%. US cash Tsy yields were down 5-10bps across the curve, led front end, as Fed rate cut expectations rose post the data prints.
  • For USD/JPY, intra-session Friday lows were at 160.35. This still leaves us above the 20-day EMA (159.51), while trend line support sits back at 157.60. Hence the current pullback is considered corrective.
  • Today on the data calendar we have May labour cash earnings. The market expected a nominal result of 2.1%y/y, prior 1.6%, while for real earnings, -1.2%, versus -1.2% prior. The sample base measures are expected to print above 2% y/y. Also out is May BoP, current account data, along with bank lending and the Eco watchers survey.
  • Local media is reporting that Tokyo Governor Yuriko Koike likely won the vote to governor the capital for a third term. She was backed by the incumbent LDP party (which supported her). See this link.
  • Finally, note the following option expiries for NY cut later: 157.25($1.8bln), Y160.00($624mln), Y161.00-15($755mln).