Friday, 8 Oct 2010

USD/JPY Drops To 15-Year Low Following U.S. Payrolls Data

The Japanese yen continued with its extraordinary bullish run against the U.S. dollar today. The USD/JPY pair fell below the 82.00 level today for the first time since 1995. The dollar fell against the British pound as well today.

The dollar fell to a 15-year low against the yen today following the U.S. Non-Farm Payrolls release. The report showed that employers cut more jobs than economists forecasted, adding to concerns that the economic recovery is stalling. U.S. non-farm payrolls fell for a fourth straight month, by 95,000 in September, said the Labor Department.

Looking ahead to the following week, the major economic releases from the U.S. are likely to have the largest effect on the currencies. It currently seems that further negative data from the U.S. economy might further weaken the greenback against the major currencies.