Dollar Edges Up as Jobs Data Looms

The U.S. Dollar continued to edge higher against the Japanese Yen during the Asian trading session, striking a 2½-year high at one point, while the Euro also steadied against the Yen as investors await further stimulus measures from Japan’s central bank. The Euro, however, edged lower against the U.S. Dollar and struck a fresh 3-week trough on speculation that the Federal Reserve will continue asset purchases in an attempt to shore up the flailing U.S. economy.

As reported at 12:56 p.m. (JST) in Tokyo, the USD/JPY pair was trading at 87.63 Yen, dropping slightly from an earlier high of 87.660 Yen struck on the EBS trading platform. A currency strategist in Singapore said that there are an increasing number of negatives affecting the Yen which does not bode well for the currency. The EUR/JPY Pair was trading at 114.26 Yen, a gain of 0.4% and just a pip from the session high, yet well off the 18-month peak of 115.995 Yen struck on the EBS on Wednesday.

In the meantime, markets today will turn their attention to the U.S. for private sector labor data as an indicator of the U.S. economy’s health. A consensus of analysts is forecasting an increase of 150,000 new jobs last month, 4,000 more than in November, with the unemployment rate unchanged at 7.7%. The EUR/USD pair was trading at $1.3042, a loss of 0.1% but improved from an earlier low of $1.3023.