Will the Dollar-Yen Pair, Which Plunged, Attempt a Rebound on the Back of the Employment Report?

Will the Dollar-Yen Pair, Which Has Plummeted, Try to Rebound on the Job Report?

04.09.2026 New

In the U.S. currency market the previous day, selling pressure on the U.S. dollar intensified after Federal Reserve Governor Christopher Waller indicated that he would support keeping the policy rate unchanged at the September meeting if inflation continues to improve.The dollar-yen pair traded within a range of approximately 3.68 yen, between 155.30 and 158.98 yen, as dollar selling compounded yen buying driven by prior speculation about an early interest rate hike by the Bank of Japan, before closing near 155.64 yen.The Dollar Index fell 0.69% to 98.91. While the 156.50–157.00 yen range is seen as resistance, it remains to be seen whether the previous day’s low of around 155.30 yen will hold as support.

Among European currencies, the pound rose against the U.S. dollar as Hugh Pill, chief economist at the Bank of England, expressed the view that a timely rate hike would be desirable to curb inflationary pressures. While the market sees only about a 15% probability of a rate hike in September, the probability of a hike by November stands at over 70%.The pound traded against the dollar within a range of about 70 pips, between $1.3479 and $1.3549, and closed near $1.3524. While the $1.3550 level is seen as resistance, the focus is likely to be on whether the pound can hold the key $1.3500 level.

Today’s economic indicators include the release of the UK’s August Construction PMI at 5:30 p.m., which is expected to rise to 45.5 from the previous reading of 44.7. At 5:50 p.m., Bank of England Governor Andrew Bailey is scheduled to speak.At 9:30 p.m., the U.S. and Canadian August employment reports will be released. U.S. nonfarm payrolls are expected to rise by 56,000 from the previous month, with the unemployment rate at 4.1% and average hourly earnings up 0.3% month-over-month.In Canada, the number of new jobs is forecast to increase by 15,000, with the unemployment rate expected to be 6.4%. We will be watching closely to see how the employment situation affects the outlook for monetary policy in the U.S. and Canada.