USD/JPY Rises Above 111.70 Ahead of US Jobs Data, Bitcoin at $51K

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Key Takeaways

USD/JPY rises for a third straight day, pushes above 111.70 ahead of Friday’s nonfarm payrolls
The price of bitcoin rallied to a session high of $51,840 as the crypto market celebrates Uptober

USD/JPY Moves Above 111.70 as Dollar Gains

The USD/JPY pair is moving strongly to the upside for a third straight day on Wednesday. This week alone, the pair has a solid gain of about 100 pips, or nearly 0.9% to reach a weekly high of 111.78. The sustained climb comes amid a rebound for the US dollar which declined slightly in the previous week against its peers.

Moreover, other currencies are swayed by a stronger greenback today. For instance, the GBP/USD exchange rate slipped earlier, indicating the sterling is losing ground against the dollar. To that end, GBP/USD declined to a session low of 1.3597 and is poised to snap a four-day winning streak.

The EUR/USD is gravitating back toward its monthly low near 1.1560 as the advance of the dollar is broad-based. Furthermore, the current EUR/USD exchange rate was last seen more than a year ago, near the end of July 2020.

Bitcoin Rallies Above $51,000

The bitcoin rally remains uninterrupted for another day on Wednesday. The original cryptocurrency spiked to a session high of $51,840 per token and is currently trading near $51,600. That said, the performance of digital assets in October was so impressive, crypto circles named the month Uptober.

In more detail, bitcoin has gained 19% so far in October. The gains, however, amount to roughly 27% from September 30 when bitcoin was trading near $40,000 per coin.

On Wall Street, stocks logged a positive session on Tuesday with the tech-heavy Nasdaq gaining 1.2%. In addition, the S&P500 and the 30-stock Dow Jones Industrial Average climbed 1% and 0.9%, respectively.

Fourth Quarter Remains Uncertain

Market participants across various assets classes have been rather anxious about the fourth quarter. In other words, lingering uncertainty related to high inflation, interest rate increase, and monetary stimulus has shaken investor confidence.

Meanwhile, troubles around the US debt ceiling are casting a shadow over the progress of the US economy. More precisely, if lawmakers do not raise the debt ceiling, Treasury Secretary Janet Yellen says, America could face its first-ever default.

On the other hand, brightening prospects for the cryptocurrency market have been fueling a steady move higher so far this month. A recent example, Bank of America this week said bitcoin and crypto-assets have now become “too large to ignore”. With that in mind, the investment bank said the future for crypto could hold “more opportunity than skeptics expect.”

What’s Next in the Week?

Traders and investors now shift their attention to the US jobs and unemployment data on Friday. A key indicator for the growth of the US economy, the nonfarm payrolls will be closely monitored by market participants.

Today’s Economic Calendar (EST times)

04:30, GBP, Construction PMI (Sep)
08:15, USD, ADP Nonfarm Employment Change (Sep)
10:30, USD, Crude Oil Inventories