JPY on "flash crash", American dollar dwindles as weekly jobless claim rose

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JPY on "flash crash", American dollar dwindles as weekly jobless claim rose

Data released on Thursday, the 3rd of January revealed that the US weekly jobless claim rose slightly, while the US private payroll soared on December, meanwhile the American dollar became more softened and fell against almost all of the major currencies including smaller South American and North European currencies as well.

While the American dollar had been falling apart against Japanese Yen on Asia Pacific trading session, the Japanese Yen had breached $104.92 at one stage briefly, sweeping away large money, which had globally been labelled as a forex “flash crash”.

During preparing this report, the Japanese Yen had been trading around $107.81. Despite a stronger labor market data, the US dollar botched to bolster its momentum and it simply torn apart against a bunch of currencies, while safe haven currencies and commodities had been posting gains as usual.

Among the surprises, the Canadian Dollar posted a 0.5 percent gain, largely boosted by the rise of oil price. The safe haven commodity gold rose above 1290 region and another break above $1300 region appears to be on the card.

The raise of weekly jobless claim data started to ask questions whether it might have been the time for US economy to show signs of slowdowns, as Chinese data displayed earlier this week and South Korean exports faltered.

At this standpoint, the American dollar is likely to swing below 95.50, while its key support level still remained at 94.45-65 region and the Japanese Yen might gradually goad the way to retest the 105-region in a near-term outlook.