USDJPY falls below 145.00 as US Treasury rates fall from multi-year highs.
During the early Asian trading hours on Thursday, the USDJPY pair is on the defensive. The major currency is now trading at 144.80, down 0.03% on the day. The US Dollar (USD) is falling as US Treasury rates fall from multi-year highs and fall below 4.20%.
Japan’s industrial activity fell for the third month in a row.
Japan’s industrial activity declined for the third month in a row in August, according to data released on Wednesday.
According to preliminary statistics from Jibun Bank, Japan’s manufacturing PMI improved to 49.7 in August from 49.6 in July. The end outcomewas less than the 49.5 predicted. During the same time period, the Service PMI increased from 53.8 to 54.3. The disappointing initial reading of S&P PMI data from the US, UK, and Eurozone, on the other hand, stimulates recession worries and enhances demand for the Japanese Yen, a traditional safe-haven asset.
United States, business activity grew slowly in August.
The US Dollar (USD) is edging down after statistics revealed that US business activity increased at a moderate pace in August.
Nonetheless, the preliminary S&P Global Composite PMI fell to 50.4, down from 52.0 before and falling short of market forecasts of 52.0. This is the greatest drop since November 2022. The S&P Global Manufacturing PMI decreased to 47 from 49 the previous month, while the Services PMI fell to 51 from 52.4 the previous month.
Meanwhile, the annual USNew home sales totaled 714K, beating predictions of 705,000 by a wide margin.
Earlier this week, Richmond Fed President Thomas Barkin stated that monetary policy would need to be tightened if inflation remained high. The Jackson Hole Symposium on Thursday will provide market participants with clues regarding the prospects for interest rates. Hawkish comments from central bank governors may restrict the Japanese Yen’s upward potential and strengthen the USDJPY pair. However, the fundamental cause of the Yen’s weakness is the monetary policy difference between the United States and Japan.
On Thursday, the US Weekly Jobless Claims and Durable Goods Orders will be released.
USDJPY Traders will be watching the Jackson Hole Symposium intently.
Traders will be watching the Jackson Hole Symposium intently. The focus will move to Fed Chairman Jerome Powell’s speech on Friday. The events will be crucial in influencing the USDJPY pair’s direction.
The focus will move to Fed Chairman Jerome Powell’s speech on Friday. The events will be crucial in influencing the USDJPY pair’s direction.
