Economic data and monetary policy will be in the spotlight on Wednesday. How will these affect USDJPY movements? Let’s find out with this 4 October USDJPY Fundamental Outlook from OctaFX.
4 October, OctaFX – In North America, payrolls processor ADP Inc. will report on private sector job creation for the month of September. Private payrolls likely rose by 130,000 last month, based on a median estimate of economists. That follows a 237,000 gain the month before.
Later in the session, IHS Markit and the Institute for Supply Management (ISM) will release separate PMI indicators for the US services sector. Both reports are expected to show steady growth in services for the month of September.
The US dollar index (DXY) was down 0.2% on Wednesday, giving up some of its recent gains. Dollar pairs will face heavy action in the coming days as investors turn their attention to US jobs data. The nonfarm payrolls report on Friday could elicit heavy volatility in the currency market.
4 October USDJPY Fundamental Outlook
The USD/JPY slammed on the breaks Wednesday, as the greenback paused following multiple rallies. The pair was down 0.2% in Asian trading, where it was seen consolidating in the low 112.60 region. The bulls retain control of the market, with investors expecting a more bullish push toward 113.80.
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