The non-farm payrolls glow is off the US dollar. Moves are small today but the dollar is lower against the yen and euro. That means no follow-through from non-farm payrolls and no excitement about Goldman Sachs moving its Fed forecast forward.
USD/JPY jumped to 102.27 from 101.90 after the report on Thursday but it peaked almost immediately then faded Friday and further today to completely erase the NFP gain.
USD/JPY 15 minute chart
The key short-term support level is the 200-day moving average, which is just below spot at 101.80.
It’s clear at the point that good US economic data isn’t enough to sustain a US dollar rally. If it’s going to continue, we need some hawkish commentary from the Fed.
Here’s the schedule:
Tuesday – Kocherlakota and Lacker
Wednesday – Fed minutes
Thursday – Fisher, George
Friday – Lockart, Evans
