Dollar up vs yen, down vs euro ahead of jobs report

MSCI’s all-country world index fell 0.81 percent.

Fed’s Evans says conditions could be ripe for hike, Fed needs to communicate hike path will be gradual. Upbeat reports would add to bets on a December move by the Fed. Those rates tend to reflect trends in monetary policy.

Latin America/EM currencies sell off after robust USA jobs report. Stocks have recovered almost all of their losses from the summer, financial markets have calmed in China and elsewhere, and the USA economy continues to slowly improve. Economists surveyed by The Wall Street Journal had predicted payrolls would rise by 183,000 in October. The Bank of England gave no sign on Thursday it was in a hurry to raise interest rates, predicting that inflation, now near zero, would pick up only slowly even if rates stay on hold all next year, and highlighting the increase in external risks to the United Kingdom economy over the past three months. The greenback hit highs of 3-1/2-months versus the GBP, seven months against the Swiss franc and 6-1/2 months against the euro.

Job growth has slowed considerably the prior two months, with only 142,000 new jobs created in September and August job growth revised down to 136,000. Hourly wages also rose at the fastest year-over-year pace since 2009. It is now at a level many Fed officials see as consistent with full employment.

Federal Reserve Chair Yellen and New York Fed President William Dudley said this week that the U.S. was ready for higher interest rates if upcoming economic data justified them.

At 1513 GMT, the dollar was up 0.87% against the yen exchanging at JPY122.81. It has made session high at 1.3317 and lows at 1.3283 levels. Analysts had expected the unemployment rate to remain unchanged last month.

Japan’s Nikkei .N225 closed up 0.8 percent, ending the week up nearly 1 percent. Whether it can build on a rise of more than 4 percent in the past month depends the expectations of a December rate move. To the downside, immediate support level is located at 1.3280 levels.

European stock markets ended higher on Friday after stronger than expected U.S.jobs data boosted the dollar, lifting export-oriented stocks like autos, although Cartier brand-owner Richemont plunged after warning of tough times ahead.

Meanwhile, USD/CAD gained 0.97% to trade at 1.3294 after Statistics Canada reported that the number of employed people rose by 44.400 in October, beating expectations for a 10.000 gain and after an increase of 12.100 the previous month.

Following the strong U.S.jobs report, interest rate futures have now priced a 70 percent chance that the U.S. Federal Reserve will raise borrowing costs next month, according to the CME Group’s FedWatch.

The S&P 500 and Dow Industrial were expected to open lower, although the payrolls outcome may change that. “The dollar has so far climbed on the back of rising USA bond yields, but that will not be enough to sustain a further rise”, said Junichi Ishikawa, a market analyst at IG Securities in Tokyo. The yield on the 10-year Treasury note was up to 2.23 percent, up from 2.21 percent on Tuesday.