The European session on a specific day witnessed a sluggish performance, with major currencies underperforming. However, the USD/JPY pair remained a focal point, continuing its upward trend and approaching the 162.00 level. The dollar experienced a dip after the softer services figures, but it recovered post the European markets closure.
The US stock markets demonstrated a strong rebound during the same day, following gains on Wall Street the previous day. This improvement in risk sentiment was due to softer ISM services, which increased the likelihood of further rate cuts by the Federal Reserve. The USD dipped around 60 pips lower after the report, but recovered half the losses, as both employment reports showed a stable labor market.
In terms of employment data, the weekly US initial and continuing jobless claims were released. The initial jobless claims came in slightly higher than expected, indicating a slight increase in the number of people filing for unemployment benefits for the first time. The 4-week moving average, which smooths out volatility, also rose, reflecting a consistent upward trend.
Continuing jobless claims, representing those still receiving benefits after an initial week of aid, also increased, surpassing estimates. The 4-week moving average for continuing claims reached its highest level since December 2021, suggesting a more prolonged impact on the labor market.
Moving on to the ADP National Employment Data for June 2024, there was a modest increase in employment, with revisions to previous months showing slightly higher job gains than initially reported. The services sector continued to be the primary driver of job growth, while the goods-producing sector showed a smaller increase. Wage growth for both job stayers and job changers has slightly moderated compared to the previous month.
Lastly, the USD/JPY live chart was provided, showing the current exchange rate between the US dollar and the Japanese yen.
