Forex Market News – USDJPY tumbles after disappointing nonfarm payrolls

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The European trading session today was mostly uneventful with very thin trading volumes due to most markets around the world being closed for the Good Friday public holiday.

Major currency pairs traded sideways as investors waited on the sidelines for the key U.S. nonfarm payrolls report. Large movements occurred after its release at 12:30 GMT due to disappointing numbers.

The March nonfarm payrolls only rose by 120,000, which was much lower than 203,000 forecast. This marked the smallest increase in job creation in five months, and was lower than the previous month’s 227,000 increase.

USDJPY tumbled to 81.29 from 82.54 within seconds of the data in thin volatile trading as investors rushed to buy the safe haven yen.  EURJPY dropped to 106.57 from 107.82 as yen gained across the board.

Dollar fell against the euro after the data, as EURUSD jumped to a session high of 1.3111 from 1.3050 .

GBPUSD rose to 1.5889 from 1.5842.

Growth sensitive currencies such as the aussie and loonie suffered on concerns that a weak U.S. economy will affect commodity prices, which both Australia and Canada produce.

AUDUSD fell to 1.0272 from 1.0334. USDCAD surged to 0.9984 from 0.9915.

The ICE dollar index which measures the dollar against a basket of six major currencies dropped 0.3 percent  to 79.856