The US Dollar trade was subdued ahead of a busy week of data points from across the globe. Markets are waiting to see if the data will show any improvement in growth in China and if inflation has finally started to edge higher in the Eurozone. The week of economic data will culminate on Friday when the US Labor Department releases private sector jobs information which is known popularly as Non-farms Payrolls. That, above all else, will help to better estimate the Fed’s intent regarding interest rate timing.
With caution prevailing in the FX markets, risk aversion is notably higher, especially with the safe haven Japanese Yen. As reported at 12:07 pm (BDT) in London, the EUR/JPY pair was trading at 134.4020 Yen, a decline of 0.31% and in the lower end of today’s trading band. The USD/JPY was also lower at 120.1620 Yen, down 0.25%.
Bank of Japan Awaits Next Move
In Japan, markets are anxious to see if the Bank of Japan will continue to allow the Yen to appreciate. The BOJ Governor has insisted that there will be no additional easing despite safe haven demand and data which could push the Yen higher. On numerous occasions, Governor Kuroda has said that he wants the Japanese government to push through promised fiscal policies and reforms that would help jumpstart the economy.