Safe Havens Retreat on Deescalation of Tension
Tensions between the United States and Iran seem to be easing back which has resulted in safe haven currencies taking a back seat to higher risk assets. The US President did not escalate the hostility but instead has meted economic sanctions on the Middle Eastern country. With the immediate threat waning, analysts say that market attention will refocus on a resolution to the US-Sino trade dispute. In the shorter term, however, FX markets will be awaiting the release of critical US employment data later today. Economists believe that the low prediction for December's new private sector hires could result in a positive surprise though many analysts are eager to learn if November's numbers will be revised.
As of 10:35 am in Tokyo, the USD/JPY was trading at 109.5310 Yen, a gain of 0.0557%, sliding from the session peak of 109.586 Yen. The NZD/JPY was trading at 72.408 Yen, up 0.0442%, while t he AUD/JPY was trading higher at 75.169 Yen, up 0.1519%.
Markets Eye on Canadian Labor Data
Later on Friday, Statistics Canada will be reporting on Canada's labor data, as well. The latest poll of economists suggest that the Canadian unemployment rate will fall to 3.8% from 3.9%, while the net change in employment should move back into positive territory with a reading of 25,000, well above the -71,200 in the previous month. Currently, the USD/CAD is trading at C$1.3066, a gain of 0.636%.