United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/JPY has been volatile around 157.86, with swings between 157.51 and 158.36 failing to establish a clear trend. For the coming sessions, the pair is expected to trade within 157.50–158.50 intraday, while the 1–3 week view favours consolidation in a narrower 157.00–158.70 band against a backdrop of longer-term downside momentum.
ING’s Francesco Pesole expects Canada’s September jobs report to show a modest payroll rebound and slightly higher unemployment, not enough to justify an October Bank of Canada hike. He notes that a December move is fully priced, while USD/CAD remains dominated by the Dollar, with a sustained move below 1.420 seen as requiring better global bond conditions.
EUR/CAD halts its four-day losing streak, trading around 1.5960 during early European hours on Friday. The currency cross gained momentum as the Euro (EUR) received support following a pullback in France's government bond yields.