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Oct 11, 2017

Uncertainty over the US dollar for the first time, buying yen is a better option for risk avoidance.

The US dollar showed a one-time rise since Friday, September employment statistics surpassed expectations, but it fell against other major currencies concerned about the tension between the US and North Korea that became apparent after that. The US dollar index fell to 93.62 after marking 94.10 which is the highest price update for the first time in about two months at Friday, falling 0.16% from the previous day. The US dollar rose for the first time in nearly three months on Friday, the rise in the wage rise rate from the US employment statistics in September and the decline in the unemployment rate seemed to potentially raise inflation, it rose temporarily to the high level of the yen against the dollar for the first time in about three months It rose.


The US Department of Labor reported that the US economy lost 33,000 jobs in September, declining for the first time in seven years. However, it is likely that this decrease is due to the decrease in the number of employment due to the impact of Hurricane Irma and Harvey. The unemployment rate fell to 4.2%, the lowest level since 2001, and the average income per hour increased by 2.9% from the same month the year before. This wage inflation strengthened the prospect that the US Federal Reserve Board (Fed) will raise interest rates in December this year. However, as Friday's report found that North Korea is planning a long-range missile test that can reach the West Coast of the United States, the fear of threatening the country has increased and the US dollar fell.


USD / JPY rose temporarily to 113.44, but finished trading last week at 112.62, which is a 0.17% drop from the previous day.

EUR / USD set the lowest value of 1.1670, which is the lowest level since August 17, then increased to 1.1732 and finished trading last week.


Meanwhile, the British pound fell to the lowest level for the first time in four weeks, because concern about Brexit was emphasized on Friday.

GBP / USD closed down last week at 1.3065 which is 0.4% lower than the previous day, 2.47% lower than the previous week, which is the biggest weekly decline rate for the first time in more than a year.


In this week's FX market, we are paying close attention to the next rate hike from the summary of Wednesday's Federal Open Market Committee (FOMC) proceedings. Also focused on Friday's US September CPI and retail sales announcement. The FX market will also pay attention to remarks on monetary normalization by President of the European Central Bank (ECB) planned for Thursday.


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