USD/JPY hits 7-month low and EUR/USD and GBP/USD rally as US dollar weakens
Friday’s payrolls report has sparked off more USD weakness, which is leading to further volatility in FX markets.
USD/JPY
The unwind continues here, and USD/JPY has touched the ¥142.00 level for the first time since January.
There is no sign of a low forming yet, though the price has bounced off ¥142.00. December 2023’s low at ¥140.25 now comes into view in the event of further losses.
EUR/USD
EUR/USD saw an impressive reversal on Friday as the US dollar (USD) slumped following the payrolls report.
The price is back to the $1.09 area, which marked the limit of gains in May and June. Further gains target the March high at $1.098. With expectations of a bigger Federal Reserve (Fed) interest rate cut in September at 94.5%, it seems likely USD weakness will continue to drive the pair higher.
GBP/USD
GBP/USD is bouncing from the lows of last week on dollar weakness. Further upside will boost the view that the pair has bottomed for the time being and a new move to $1.30 is underway.
A close back below $1.27 would be needed to negate this view.
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