Yen Weakens On GPIF Woes While USD Strengthens Ahead of NFP

The yen fell against all its major peers after the head of an advisory panel called on Japan’s Government Pension Investment Fund to start cutting domestic debt holdings right away.

The Bloomberg U.S. Dollar Index strengthened as investors weighed whether payrolls data due today will encourage the Federal Reserve to consider trimming stimulus as early as this month. The U.S. economy added 185,000 jobs in November, a Bloomberg News survey showed before the Labor Department report. Australia’s dollar was set to match its longest stretch of weekly declines since 1985.

“If there are less willing buyers for Japanese bonds, that’s going to put downward pressure on the yen,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney. “If we get comfortably above the 200,000 mark for payrolls, that’s going to be positive for the U.S. dollar.”


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu