USD/JPY stays calm near 110.00 on USD weakness
- USD/JPY prints minute losses on Thursday during the initial Asian trading hours.
- US Dollar Index slips below 93.00 on disappointing data.
- Lower US Treasury yields augmented the downside for the US dollar.
The USD/JPY pair remains on the lower edge in the early Asian session. The pair rose to its highest level since August 13 near 110.50 in the US session but failed to sustain the momentum.
At the time of writing, USD/JPY is trading at 110.00, down 0.02 % for the day.
The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades below 92.50 its lowest level in the last month with 0.19% losses.
The ADP Employment data showed that the US private sector added fewer jobs than expected in August whereas ISM Manufacturing PMI jumped to 59.9 in August from 59.5 in July, above the market forecast of 58.6.
The US 10-year benchmark Treasury yields trade lower at 1.29% with 0.02% losses.
On the other hand, the Japanese Yen remained on the backfoot after the Japanese Manufacturing sector registered a softer improvement reflecting the continued impact on the CoVID-19 pandemic.
Meanwhile, Bank of Japan’s (BOJ) Deputy Governor Masazumi Wakatabe urged that the central bank must avoid reducing stimulus abruptly and instead remained ready to ramp up monetary support if the economy worsens.
As for now, investors wait for the US Balance of Trade, Unit Labour Costs QoQ Final, Initial Jobless Claims, and Nonfarm Productivity QoQ data to gauge the market sentiment.
USD/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
