The yen was lower against major rivals in Asian trading Friday. | Learn Forex | GoLearnForex.com

The yen was lower against major rivals in Asian trading Friday.

Written by article default Friday, 04 June 2010 09:41

Market Overview
The yen was lower against major rivals in Asian trading Friday but steadied after the ruling Democratic Party of Japan elected Naoto Kan as its leader, all but assuring that he will formally assume the prime minister's role later in the day.
But speculators refrained from rushing to sell yen, despite a weak-yen advocate moving closer to becoming Japan's new leader, as weaker regional share markets sustained some demand for the safe-haven currency.
The dollar bought JPY92.66, up from JPY92.59 in North American trading late Thursday.
The euro changed hands at JPY112.78, up from JPY112.58 Thursday.
Against the greenback, the EURUSD traded at USD1.2173, up from USD1.2160 late Thursday.
On Thursday, the euro fell near four-year lows against the dollar, as upbeat U.S. economic reports lifted hopes for Friday's May employment report, while euro-zone data slightly missed expectations.
The dollar index (DXY), which tracks the U.S. unit against a basket of six major currencies, slipped to 87.151 from 87.220 late Thursday.
The British pound bought USD1.4618, up from USD1.4611 Thursday.
Weaker equities and softer metals prices weighed on the Australian dollar during a quiet session as dealers count down to what are expected to be very strong U.S. non-farm payrolls numbers later Friday.


Market expectation
If the U.S. non-farm payrolls report for May, due at 1230 GMT, reveals strong growth in hiring, that could boost the dollar and euro further against the yen, dealers said. Economists expect the report to show the economy added a mean 515,000 jobs, more than the 290,000 gain in the previous month.
A result in line with, or better than the forecast could send the dollar to around JPY93.50 and the euro above JPY114.00, dealers said.
While the hiring of temporary workers for the U.S. census being conducted through July likely boosted payrolls, the result, excluding that effect, could still be strong, analysts said. Analysts estimate the figure excluding census workers will be still solid at 175,000.
European stocks are expected to start modestly higher overall Friday, with a steady market in the U.S. and a mixed session in Asia providing little impetus.