In November, Japan’s household spending rose by 2.9% compared to last year. This increase was surprising, as most expected a 0.9% drop. The Australian dollar remained steady, despite disappointing inflation data from China. In the currency market, USD/CHF held around 0.8000, driven by higher demand for the Swiss franc as a safe haven.

Japanese Yen Performance

The Japanese yen stayed near its weekly lows against the US dollar, even with the positive spending news from Japan. Meanwhile, EUR/JPY rose above 183.00, challenging a nine-day exponential moving average. In other market news, USD/CAD traded near 1.3900 while awaiting employment reports from the US and Canada. The US Dollar Index increased to almost 99.00 in anticipation of the US Nonfarm Payrolls. Gold prices faced resistance near $4,500, with future movements hinging on the US Nonfarm Payrolls and a Supreme Court ruling. JasmyCoin, Polygon, and Monero saw gains, but XRP fell due to decreased demand from both institutional and retail investors.

Focus On US Nonfarm Payrolls

All eyes are on the upcoming US Nonfarm Payrolls (NFP) report, as the US Dollar Index moves closer to 99.00. The forecast for December 2025 job growth is just 60,000, a significant decline from the robust monthly gains over 200,000 seen in 2024. If the actual numbers exceed expectations, the dollar may rise sharply, making put options on EUR/USD a smart move. Japan’s unexpected 2.9% increase in household spending for November 2025 hasn’t helped the yen, which remains weak against the dollar. EUR/JPY is now above 183.00, highlighting that the Bank of Japan’s interest rate policy is the main concern for the market. This contrast between strong domestic data and a weak currency is likely to persist, making yen-funded carry trades appealing. The dollar’s strength is also affecting other major currencies, with GBP/USD nearing the 1.3400 level. This ongoing sell-off reflects market caution as traders await clearer signals from the US labor market. Until the NFP data is released, there’s little reason to oppose the dollar’s strength against both the euro and the pound. Gold is stabilizing around the $4,500 mark, reflecting major economic changes throughout 2025. If the NFP numbers come in lower than expected, this could boost gold prices, as it may lead to speculation that the Federal Reserve will adjust its policy. Traders should brace for increased volatility, as significant moves in gold are likely to follow the employment data release. Create your live VT Markets account and start trading now.

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