Dollar Under Pressure as Yen Surges and Oil Hits $93
The dollar is under pressure ahead of Friday's US non-farm payrolls report and the Federal Reserve's September decision. The Japanese yen has strengthened sharply on expectations of tighter Bank of Japan policy, and WTI crude oil has moved back above $93 a barrel.
The latest ADP report showed private-sector employment rising by only 38,000, below market expectations of around 48,000. This reinforced the view that the spring rebound in the US labour market is losing momentum.
Investors are now waiting for weekly jobless claims, the services ISM, and Friday's NFP report, which is expected to show roughly 56,000 new jobs and an unemployment rate of 4.1%. Rate expectations remain finely balanced, with a little over 60% probability of a September Federal Reserve rate increase.
The yen has been the standout currency, gaining around 1.5% against the dollar and pushing USD/JPY towards 156.2, its lowest level in about a month. This move followed comments from Bank of Japan board member Hajime Takata, who argued for faster and more flexible rate increases.