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The dollar rebounded after U.S. payrolls rose by 200,000 in January, above consensus, and wage growth reached 2.9% year over year. The Bank of Japan unexpectedly offered unlimited purchases of 10-year JGBs, sending USD/JPY up to 110.15, and Congress moved to extend the funding resolution.
A stronger dollar and a weaker yen can reduce import demand from Japan and lower dollar-denominated commodity prices. Short-term USD strength is a modest headwind for U.S. export prices.
asia.citi.comTiwari JaideepFeb 5, 2018After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Not enough comparable past events yet for a historical read.
After 533 past bearish macro events, Euro (USD per EUR) moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Above-consensus payrolls, wage growth and the BoJ's unlimited JGB purchase operation pushed USD/JPY higher and drove the dollar rebound.
