FX.co ★ Japanese Yen Weakens Ahead of Key US Jobs Report

The Japanese yen edged closer to 144 per dollar on Friday, continuing its decline from the previous session as traders remained cautious ahead of the anticipated US monthly jobs report. Market sentiment was also shaped by a conversation between US President Donald Trump and Chinese President Xi Jinping, during which the two leaders agreed to persist in trade negotiations, yet without providing any concrete details. Domestically, a report revealed an unexpected decline in Japan’s household spending in April, attributed to rising prices that are impacting consumer demand. This soft indicator adds to the factors the Bank of Japan is considering as it evaluates the timing for its next interest rate increase. Nevertheless, earlier this week, BOJ Governor Kazuo Ueda reiterated that the central bank is prepared to raise rates if economic conditions and inflation forecasts are achieved, strengthening the expectation of a gradual but consistent approach to policy tightening.