- CB Consumer Confidence Index drops to 121.5 in June.
- New home sales contract by 7.8% on a monthly basis in May.
- 10-year US T-bond yields drops below critical 2% mark.
The USD/JPY pair came under a renewed selling pressure in the American session and dropped below the 107 mark amid the ongoing broad USD weakness and the stronger demand for safe havens. As of writing, the pair was trading at 106.92, losing 0.33% on a daily basis.
Today's data from the U.S. revealed that the consumer confidence continued to weaken in June with the Conference Board's Consumer Confidence Index dropping to its lowest level since 2017 at 121.5 from 131.1 in May to make it difficult for the US Dollar Index to stage a recovery despite the extreme oversold conditions. Other data from the U.S. showed that new home sales declined by 7.8% in May to miss the market expectation of +1.9% and the Richmond Fed Manufacturing Index retreated to 3 in June from 5 in May.
Now markets are waiting for FOMC Chairman Powell to deliver his remarks on the monetary policy later in the session. Earlier today, NY Fed President Williams didn't touch on the policy outlook in his prepared remarks. At the moment, the US Dollar Index is unchanged on the day at 96.
Meanwhile, the fact that the 10-year US Treasury Bond yield dropped below the critical 2% mark keeps the bearish pressure on the strongly correlated USD/JPY pair intact. Just recently, U.S. President Donald Trump tweeted out that any attack by Iran on anything American will be met with "great and overwhelming force," suggesting that the tension in the Middle East is unlikely to ease anytime soon.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.