Dollar-Yen Volatility Ahead of Jobs Report as Month-End Flows Intensify
The foreign exchange market is gearing up for a busy week ahead of the September jobs report. U.S. long-term interest rates, dollar-yen and euro-yen pairs, and supply-demand factors are in focus as month-end and quarter-end flows come into play.
Last week's trading saw dollar buying dominate early before yen buying strengthened into the weekend, with USD/JPY briefly climbing above 159 before dipping below 157 at one point. EUR/USD traded soft, slipping to the mid-1.13 range at one stage.
This week features a dense calendar of high-profile U.S. economic indicators, including the October 2 employment report, consumer confidence index, JOLTS job openings, ADP employment report, PCE deflator, and second-quarter GDP final estimate. Multiple Fed officials are set to speak, intensifying the search for monetary policy signals.
The BOJ will release minutes of its July 30-31 monetary policy meeting on September 28, while Fed Vice Chair Michelle Bowman is scheduled to speak at 21:15 Japan time, followed by Governor Lisa Cook and Richmond Fed President Thomas Barkin. ECB President Christine Lagarde is also set to speak in Europe.