Yen Soft, Household Spending Next
The Dollar/Yen pair lowered 0.01% to trade at 109.52. Today, the US will release Factory Orders and Japan will present Household Spending. Tomorrow, the US will issue manufacturing and employment data.
On Friday, US NFP data exceeded all projections with wage growth rising from 0.1% to 0.3%. Nonfarm payrolls grew to 164K from 189K. The jobless rate declined to 3.8%. 2 more rate hikes remains a much likely scenario for the rest of this year. They are expected in June and September. However, a December rate raise, which would mark the fourth hike in 2018, is priced in around 40%.
There was a 2-days meeting of the G7 finance ministers and central bank governors. Members were worried with a trade tension between the US and China. Specifically: “concerns were expressed that the tariffs imposed by the United States on its friends and allies, on the grounds of national security, undermine open trade and confidence in the global economy.” And, “Finance Ministers and Central Bank Governors requested that the United States Secretary of the Treasury communicate their unanimous concern and disappointment.”