US Dollar sinks post lower than expected jobless numbers

The US dollar has been declining versus the Japanese yen over time, and the unemployment rate has not changed. The Japanese Yen is hurting the dollar because Bank of Japan Chairman Kazuo Ueda hinted at an impending shift in monetary policy. Rates negative has been maintained by the Bank of Japan for many years, but it looks like the end is in sight. With the Japanese Yen up more than 1.25% versus the US dollar, the US Dollar Index turns negative and ends this week’s winning run.

On the economic front, before Friday’s official US Nonfarm Payrolls Jobs report, traders can evaluate the state of the US jobs market economically. If the Challenger Job Cuts Index continues to rise, the US Jobs Report is expected to be optimistic and positive. In actuality, there were -40.8% fewer job cuts in October than there were the month before. Analysts anticipate that the BoJ may buck its negative rate trend of the past ten years.


The Challenger Job Cuts were released, and the weekly Jobless Claims were released. The lighter Wholesale Inventories are due to be released for October, and the Consumer Credit Change for October will be released near 20:00 GMT. Equities in Asia got hammered in early Thursday trading, while the US opening bell is seeing the Nasdaq up over 1% with other US indices following suit.

The CME Group’s FedWatch Tool shows that markets are pricing in a 97.7% chance that the Federal Reserve will keep interest rates unchanged at its meeting next week. Yields in Europe are falling even quicker and widening the gap with US Yields. The US Dollar Index technically is taking a snooze until NFP data on Friday.