USDJPY bears keep their grip as the US dollar remains weak

The USDJPY crosses the 131.50 level.

USDJPY is lower as the US Dollar remains weak. The pair is currently trading near 131.50, having fallen from a high of 131.73 to a low of 131.30 thus far.

US Dollar hovers near two-month lows.

The US Dollar remains under pressure near two-month lows. As a series of troubling data from the US has cooled bets on a more hawkish Federal Reserve. Which now appears to be nearing the end of its monetary tightening cycle. According to data released overnight, labor market conditions may finally be improving. With job openings, a measure of labor demand, falling by 632,000 to 9.9 million on the last day of February.

Factory orders in the United States fell 0.7% in February, the second consecutive month of decline. following a 2.1% drop in January following a 1.7% increase in December. This data comes as the Institute for Supply Management (ISM) reported yesterday that its Manufacturing PMI fell to 46.3 last month. This was the lowest reading since May 2020, down from 47.7 in February.

The focus will now shift to Friday’s Nonfarm Payrolls data.

Traders’ focus will now shift to Friday’s Nonfarm Payrolls jobs report, despite the fact that many markets will be closed for the Easter holiday.

“US payrolls likely remained firm at a still above-trend pace in March, though slowing from stronger prints in January and February,” TD Securities analysts explained. “We also expect the unemployment rate to remain unchanged at 3.6%, with wage growth of 0.3% MoM.”

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