Poor US Jobs Data Weakens Dollar, Yen Sell-off Back on BOJ Stimulus - 8.4.2013

The US dollar lost broadly on Friday following much less increase than expected of Non-Farm Payrolls, the EURUSD advanced back above 1.30 and was limited by 1.3040 to retreat early today to 1.2980. Jobs excluding farming sector added 88K in March compared to revised 268K increase in February with the US dollar index decreasing as low as 82.23, US unemployment rate though decreased to 7.6% from 7.7%. At the same time, Canadian employment surprisingly decreased by 54.5K in March compared to 50.7K increase in February and unemployment rate increased to 7.2%. USDCAD rose to 1.0234 after worse than expected jobs report for Canada but then retreated back to support at 1.0156. The US dollar against the Japanese Yen retraced on Friday to 95.75 on profit taking, however Yen sell-off resurfaced advancing early on Monday to new highs since June 2009. Stronger stimulus measures applied by the new BOJ leadership, Haruhiko Kuroda, which was unanimously voted, indicating determined leadership towards fighting inflation. There are reports that BOJ will begin bond purchases today pushing the pair higher. NIKKEI 225 gained 358.95 points today or advanced by 2.8% to more than 4 ½-years high. It is very likely to continue the upside move and find cap at psychological level around 100. The precious metal followed an increasing path from support at 1539.99 on Thursday towards handle at 1583.31 on Monday and remains steady above 1575.26. Gold stregthened amid accumulating North Korea tension is decreasing risk appetite. As well as Fed is more likely now to hold quantitative easing further due to weak US jobs.