Markets kicked off 2026 with a familiar theme: the US dollar and Japanese yen are in the spotlight. After weekend headlines from Venezuela and Greenland barely moved the needle, the FX world is flipping its gaze to this week’s US jobs data. 💼🔍
Geopolitics take a back seat
The dollar jumped early on after news from Venezuela, while the euro and Swiss franc softened. Precious metals and stocks climbed, and oil prices swung before easing. Despite talk of the US taking control of Venezuelan oil, traders shrugged 🤷 and dug into seasonal factors and mixed euro data instead.
US jobs data steal the show
This week’s lineup—think payrolls, unemployment rate, and wages—could set the tone for USD/JPY. A surprise on the upside might keep the dollar on track, especially since the Federal Reserve has already priced in some rate cuts later this year. For anyone planning a tech spree in Tokyo with mobile wallets or sending remittances back home, these shifts matter in your pocket.
Chart-watchers still bullish on USD/JPY
Technically, USD/JPY is still eyeing higher ground. After stalling just below 158.00 last year, the pair’s pullback from 157.00 looks more like a breather than a reversal. If US data arrives strong, don’t be surprised to see it test fresh highs soon 📈.
Bottom line: the yen’s on the backfoot, but a solid US jobs report could flip the script. Stay tuned and refresh your rates app! 📲
Reference(s):
cgtn.com
