FX Markets – Review

On Friday, figures for the US labour market showed that employers added fewer workers in August than estimated which dampens speculations that the FED is going to cut bond purchases in September. Payrolls rose by 169,00 in the last month and the jobless rate dropped to 7.3%. As a result, the USD declined against most of its counterparts. The EUR/USD advanced to 1.3170.

On the other side of the Pacific, Japan’s successful bid to host the 2020 Summer Games was greeted with optimism, the market estimates that this might boost construction and tourism, create more jobs and overcome the negative effects that the 2011 earthquake and tsunami had on the economy. This could help Prime Minister Abe’s efforts to drive the economic recovery by taming inflation and boosting consumer confidence.