The US Dollar continued to lose ground during the European trading session, losing about .5% versus the safe haven Japanese Yen, among others. This week the Yen has appreciated more than 3% on the Dollar as investors fear the likelihood of a win for the Republican nominee, Donald Trump. The news on the presidential campaign pushed the Dollar lower despite the outcome of the Federal Reserve policy decision which seems to hint at a December rate increase.
As reported at 9:34 am (GMT) in London, the USD/JPY was trading at 102.941 Yen, down 0.38%; the pair has ranged from a low of 102.54 Yen to a peak of 103.44 Yen. The EUR/USD was up at $1.1099, up 0.01%, moving away from the session trough of $1.1087 and back toward the high of $1.1126.
Ahead for FX Markets
Later today, markets will await a monetary policy decision from the Bank of England though expectations are that the status quo will be maintained with a 0.25% benchmark interest rate. Looking ahead, markets will focus on tomorrow’s release of US labor data, the Non-farms Payroll Report, which provides private sector jobs data. The current consensus calls for a rise to 175,000 new jobs in October. Any disappointment is likely to impact sentiment on a December rate adjustment, given that the Fed’s mandate is to ensure full employment as well as price stability.