USD/JPY slumps to fresh two-week lows near 106.70
- USD/JPY is falling for third straight day on Friday.
- US Dollar Index lost its traction during American trading hours.
- Wall Streets main indexes trade mixed in the absence of macroeconomic data.
The USD/JPY pair extended its slide after breaking below 107.00 and touched its lowest level since June 24th at 106.65. As of writing, the pair was down 0.42% on the day at 106.75. On a weekly basis, USD/JPY is losing nearly 100 pips and looks to snap its two-week winning streak.
USD struggles to find demand
In the absence of significant macroeconomic data releases, the greenback's valuation continues to impact the pair's movements.
The US Dollar Index (DXY), which gained 0.3% on Thursday, stayed relatively quiet below 97.00 during the first half of the day but lost its traction in the early American session. At the moment, the DXY is losing 0.28% on the day at 96.50.
The modest rebound witnessed in the S&P 500 and the Dow Jones Industrial Average seems to be weighing on the greenback. On the other hand, the Nasdaq Composite is down 0.2%, suggesting that market sentiment remains mixed ahead of the weekend. The latest data from the US showed that the number of confirmed coronavirus cases in the state of Florida increased by 11,433 to a total of 244,151.
Meanwhile, the US Bureau of Labor Statistics announced that the annual core Producer Price Index (PPI) fell to 0.1% in June to miss the market expectation of 0.4% but was largely ignored by the market participants.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
