The US Dollar came under heavy pressure in Tokyo trade as FX trades await the release of US labor data, specifically, April’s Non-Farms Payroll Report. Analysts expect the Labor Department report to show 22 million fewer jobs, with the unemployment rate like at 5%, in line with not just that data but the past several week’s unemployment benefit claims. The devastating labor news is all due to the Coronavirus fallout, with lockdowns largely still in place across the United States. FX strategists believe that these losses for the greenback were logical given profit taking after a strong performance relative to its peers.
In Tokyo trading, as of 10:45 am, the USD/JPY was trading lower at 106.2600 Yen, down 0.01% and off the earlier trough of 106.219 Yen. The EUR/USD was higher at $1.0847, a gain of 0.1736%; the pair has ranged from a low of $1.08211 to a high of $1.08512 in today’s trading session. The GBP/USD was higher at $1.2399, up 0.3212%, off the session peak of $1.24055.
High Risk Currencies Boosted by China News
In Canada, the Canadian Dollar was able to make headway against the US Dollar, notching a 6-week high after the latest data out of China showed exports rising. That gave FX traders hope that the Chinese economy could finally be showing signs of a rebound after the economy came to a near standstill as a result of the viral spread. Other higher risk currencies also moved higher as a result, namely the Aussie and Kiwi Dollars. The USD/CAD was trading at C$1.3295, a loss of 0.40%, while the AUD/USD was at $0.6357, up 0.6653% and the NZD/USD was higher at $0.6122, a gain of 0.6212%.