North Korea’s preparations to test a long-range missile that can potentially reach the US west coast has stirred up risk sentiment once again. Confirmation of this development comes from a Russian lawmaker, who had returned from a visit to Pyongyang. After initially surging higher on a hurricane-ridden September jobs report that showed the first contraction in employment creation in seven years, the US dollar turned negative against most major currencies on Friday.
Nonfarm payrolls fell by -33,000, undercutting market estimates of a 90,000 gain despite the unemployment rate falling to 4.20%. USDJPY spiked to a 12-week high on Friday before sliding lower, with the pair was last seen around 112.550. On the downside, the area around 112.200 marks a key support zone, with any breach below potentially causing a deeper selloff. Trading is in the Yen is thinner than normal owing to a public holiday in Japan.