Yen Rises As European Shares Traded Lower Ahead Of Key U.S. Jobs Data

The Japanese yen strengthened against other major currencies in the European session on Friday, as European stock markets traded lower amid growth worries persisting ahead of the crucial U.S. jobs report due later in the day.

The labor market report could steer the Federal Reserve’s interest-rate decision in the remaining months of 2024.

Across the Atlantic, traders eagerly await the monthly jobs report, which includes both public and private sector jobs, for additional clues on the outlook for interest rates and the economy.

Economists currently expect employment to climb by 160,000 jobs in August after an increase of 114,000 jobs in July.

The unemployment rate is expected to edge down to 4.2 percent after rising to 4.3 percent in July, reaching its highest level since October 2021.

The U.S. payrolls report coupled with comments from Federal Reserve officials including John Williams and Christopher Waller might provide clearer insight into the potential scale of an anticipated rate cut this month.

The safe-haven currency or the yen traded lower against its major rivals in the Asian trading today.

In the European trading today, the yen rose to a 1-month high of 157.92 against the euro, nearly a 4-week high of 187.26 against the pound and nearly a 3-week high of 169.01 against the Swiss franc, from early lows of 159.41, 189.09 and 170.00, respectively. If the yen extends its uptrend, it is likely to find resistance around 154.00 against the euro, 180.00 against the pound and 167.00 against the franc.

Against the U.S. and the New Zealand dollars, the yen advanced to nearly a 5-week high of 142.05 and more than a 2-week high of 88.39 from early lows of 143.80 and 89.29, respectively. On the upside, 139.00 against the greenback and 87.00 against the kiwi are seen as the next resistance levels for the yen.

Against the Australia and the Canadian dollars, the yen jumped to more than 4-week highs of 95.59 and 105.24 from early lows of 96.73 and 106.27, respectively. The yen is likely to find resistance around 90.00 against the aussie and 103.00 against the loonie.

Looking ahead, Canada Ivey’s PMI for August, Canada and U.S. jobs data for August and U.S. weekly Baker Hughes oil rig count data are slated for release in the New York session.