- USD/JPY reaches close to 149.00 as Japanese Government Bond yields rise.
- Investors are waiting for US job openings data for July.
- This week’s non-farm payroll data will be crucial for the US dollar.
The USD/JPY pair is climbing towards 149.00 during Wednesday’s European session. This follows a significant surge in Japan’s long-term bond yields, which has impacted the Japanese yen (JPY), making it lag behind its rivals.
In recent weeks, yields on Japanese Government Bonds (JGB) have soared to a near-record high of almost 3.29%. This has led many investors to offload JGBs due to growing concerns regarding the country’s debt situation.
On the other hand, the US dollar (USD) has been fairly volatile. The risk-off sentiment has come into play, leading to some instability. The US Dollar Index (DXY), which measures the dollar against six major currencies, has been under pressure, fluctuating around 98.60.
Earlier today, increased safe-haven demand for the Greenback emerged as major global bond sales took place.
At the same time, traders are keeping a close eye on the impending US Jolts Job Openings data for July, set to be released at 14:00 GMT. This report will offer insights into labor demand, with expectations for approximately 7.4 million job postings, matching previous values.
This week, Friday’s non-farm payroll (NFP) data is anticipated to significantly influence the US dollar’s trajectory as it has direct implications for market speculation regarding the Federal Reserve’s monetary policy.
