Yen dropped as US jobs data crushes...........>

FOREX: Yen dropped as US jobs data crushes expectations

-Headline January nonfarm payrolls data came in at almost double the medium

forecast: 304k vs. Exp. 165k which, while somewhat countered by negative

revisions, acted to soothe markets that an economic crunch is forthcoming. This

helped lift equity markets on both sides of the pond and underpin a rally in US

yields, prompting USD/JPY to recover back above the Y109.50 level and set sights

on YTD highs of Y110.

-EUR traded well, but the EUR/USD rally stopped short of testing the Thursday

high at $1.1514 as better than expected core Eurozone CPI data countered poor

Manufacturing PMI from Germany, Italy, Greece and France. EUR/JPY, however,

surged higher, putting a test of the Y126.24 50-dma on the cards for next week.

-The coming week is very UK-centric, with services and composite PMI due

alongside the BoE Quarterly Inflation Report. Canada's January jobs report,

German industrial production are due. US durables goods orders and advance Q4

GDP may also be released pending progress following the government shutdown.

Reserve Bank of Australia are expected to keep rates unchanged at 1.5%.