- The odds of additional Japanese rate hikes recede
- US yields surge weighs on yen
- Positive US labor data reduces recession concerns
Yen fell in Asian trade on Friday on track for the fourth loss in a row against the dollar, moving away from seven-month highs on profit-taking amid a positive sentiment in the markets.
The decline came after somewhat bearish remarks from the Bank of Japan’s Deputy Governor, which hurt the odds of additional rate hikes this year.
Yen is also pressured by higher US 10-year treasury yields following strong US unemployment claims data, which reduced concerns about a potential US recession.
The Price
The USD/JPY rose 0.4% to 147.82, with a session-low at 147.02.
Yen fell 0.35% on Thursday against the dollar, the third loss in a row on profit-taking away from seven-month highs at 141.68.
Positive Sentiment
As US recession concerns faded, and the unwinding of yen carry trades slowed down, risk sentiment surged once again, with US stocks marking their best daily performance in 2024 on Thursday.
Bearish Remarks
Bank of Japan Deputy Governor Shinichi Uchida said the central bank won’t raise interest rates when the markets are unstable.
He said that given the current turmoil, the BOJ will prefer to maintain current levels of monetary easing unchanged.
Japanese Rates
Naturally, following the remarks, the odds of a BOJ interest rate hike for the third time this year tumbled considerably, which would likely reduce the pressure to unwind carry trades.
US Yields
US 10-year treasury yields traded at 4.022% on Friday, moving once again above 4.00%, and underpinning the greenback.
The developments came after US unemployment claims fell by 17 thousand last week to 233 thousand.
According to the Fedwatch tool, the odds of a 0.5% Fed interest rate cut in September fell to 56.5%.
Gold prices rose on Thursday after four sessions of losses, as the dollar stabilized against most major rivals while the stock markets rebounded.
Official US data showed unemployment claims fell by 17 thousand to 233 thousand last week, below estimates of 240 thousand.
Last week’s data showed the US economy added 114 thousand jobs last month, slowing down sharply from 179 thousand, while unemployment rose from 4.1% to 4.3%.
The data back then triggered massive concerns that the US economy might be heading for recession.
The dollar index stabilized at 103.2 as of 21:26 GMT, with a session-high at 103.5, and a low at 102.9.
On trading, gold spot prices rose 1.4% as of 21:26 GMT to $2465 an ounce.
US stock indices rose on Thursday and extended the recovery from Monday’s slaughter, following positive data that reduced concerns about a US recession.
Official US data showed unemployment claims fell by 17 thousand to 233 thousand last week, below estimates of 240 thousand.
Last week’s data showed the US economy added 114 thousand jobs last month, slowing down sharply from 179 thousand, while unemployment rose from 4.1% to 4.3%.
The data back then triggered massive concerns that the US economy might be heading for recession.
On trading, Dow Jones rose 1.4%, or 528 points to 39,292, while S&P 500 rose 1.9%, or 98 points to 5298, as NASDAQ added 2.4%, or 386 points to 16,583.
- Ripple snags court victory over SEC
- Cash influx rises into bitcoin exchange funds
Bitcoin rallied 6% on Thursday, resuming its recovery from six-month lows amid a positive sentiment in the crypto market.
The Ripple company snagged a court victory over the US SEC, which boosted infusions into bitcoin exchange funds.
Prices
Bitcoin rose 6% at Bitstamp today to $58,482, with a session-low at $54,748.
On Wednesday, bitcoin lost 1.65%, after a 3.8% surge in the previous session away from six-month lows at $49,577.
Crypto Market Value
The market value of cryptocurrencies rose by over $100 billion to a total of $2.130 trillion, as bitcoin, ethereum and ripple gained ground.
Court Victory
A federal court in the US decided that Ripple should pay a civil fine of $125 million, much less than the $2 billion imposed by the U.S. Securities and Exchange Commission
The SEC sued Ripple in 2020, accusing the company of collecting money by selling the currency XPR without registering it as a security, with the currency’s value surging by 25% after the court decision.
Infusions Surge
Cash infusions into Bitcoin Exchange Traded Funds reached $45.1 million on August 6, compared to outside flows of $30.6 billion.
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