FOREX. Weekly review:[E]

USD fell 0.3% against the yen during the week.
On Friday USD has sharply slide down to the 4 week lows versus the euro and yen after weak Payrolls missed economists forecasts.
As the Labor Department informed US economy in June made 121,000 new work places versus May 92,000 and awaited 175,000. You can see data here:
As a result weak data bolstered speculations US economy slow down boosting bets Fed can make an August pause in it's tight policy as latest accompaneing statement testifies further Fed steps will depend on current economy outlook and mainly on inflation rate and economy growth.
The interest rates futures market odds Fed will lift it's borrowing costs in 25 b.p. on August 8 meeting makes now 59% declining from Thursday's bets in 67% and 85% in the end of June.
Strengthening of USD in the middle of week was caused by expectations of strong data on labor market, after a private report on July 5 by Automated Data Processing Inc.added the most jobbs since 2001.
ADP and Macroeconomic Advisers LLC analytic group published forecast, U.S. companies added 368,000 jobs in June.
This led to bullish sentiment upon USD making further disappointment more pivotal for dollar prospects.
On Thursday ECB left interest rate on 2.75%, however, ECB President Jean-Claude Trichet speech at press-conference confirmed the necessity of rate hike at the next meeting. He also noted about the vigilance concerning inflation.
BoJ President Toshihico Fukui on the last week said country's economy continues to regain. It caused speculations conserns interest rate hike on coming meeting for the first time for 6 years. Remind, meeting will be on next week. Additional reason for optimism may be the government report showed the pace of economy growth to 2.1% and for the first time in 9 years price indexes can testify about the end of deflation.
However attempts of strengthening the yen appeared limited because of fears of further launch of North Korea missiles. Remind, that on Wednesday the yen decreased to 2-week low after 7 missiles fell to sea of Japan.
The time for "bullish dollar bolstered on speculations higher rates came to the end.", said Samarjit Shankar, the CEO of global strategies from Mellon Financial Corp. "This time focus is displaced on ECB and BOJ rates hike."
Shankar foreshadows further dollar drop in 2 months prospect will make $1.31 on EUR and Y111 versus yen. Thus,there are serious bases for the dollar to loose one of major factors of support.
Despite of disappointing weak data details that can possibly testify US economy slow down the report details show an ambiguous picture.
Thus unemployment remained on five years low and made 4.6%, Average hourly earnings lifted on 3.9% versus 2005 data breaking five years highs and crimping inflation growth and possible tightening.
Thus, it is premature to speak about the beginning of the tendency of USD decrease. Most likely the dollar will remain in former ranges in the future.