The US dollar is broadly slumping as Treasury yields fall and dollar bulls take profit.
The soft non-farm payrolls headline is winning the day and there’s a UBS note circulating (aided by Nick Timiraos) that argues that next month’s average hourly earnings number will be low.
Fed pricing hasn’t changed with about 9 bps of additional hiking priced in. The data focus moves to next week’s CPI where the consensus is +3.3% y/y, up from 3.0% but that’s coupled with relatively-benign readings on headline and core at +0.2% m/m.
USD/JPY is at the lows of the week and flirting with 142.00.
USDJPY 1 h
Technically, there isn’t much below in the way of support.
EUR/USD has also busted through 1.1000 and continued to 1.1020 which is a shade above the Aug 1 high.
EURUSD 1h