{"id":14028,"date":"2024-07-04T02:21:06","date_gmt":"2024-07-04T02:21:06","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14028"},"modified":"2024-07-04T02:21:06","modified_gmt":"2024-07-04T02:21:06","slug":"dollar-weakens-after-soft-data-yen-still-struggling","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/dollar-weakens-after-soft-data-yen-still-struggling\/","title":{"rendered":"Dollar weakens after soft data, Yen still struggling"},"content":{"rendered":"\n<p><strong>Key points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The dollar index (DXY) is flat at 105.28 after weakening to 105.04.<\/li>\n\n\n\n<li>U.S. economic data shows signs of a slowing economy, influencing market expectations.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The dollar faced pressure on Thursday following U.S. economic data that indicated slowing growth. Despite this, the yen remained weak, pinned near a 38-year low, prompting concerns about possible government intervention.<\/p>\n\n\n\n<p>The euro stayed close to a three-week high against the dollar, while sterling strengthened ahead of UK elections.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Dollar index flat as economic data signals slowdown<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/07\/DollarIndex-VTMarkets-4July-1024x461.jpeg\" alt=\"Chart of the USDX with a trend of -0.38%, showing the dollar weakening to 104.943 following soft U.S. economic data, including a weak services report, disappointing ADP employment report, and increased initial unemployment benefit applications. Hosted by VT Markets, a forex CFDs brokerage.\" class=\"wp-image-14029\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Dollar index trading at 104.943 as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>The dollar index (DXY), which measures the greenback against a basket of currencies, was flat at 105.28 after briefly dropping to 105.04, its lowest since June 13. Recent U.S. economic data, including a weak services report and a disappointing ADP employment report, painted a picture of a slowing economy. Initial applications for U.S. unemployment benefits also increased last week.<\/p>\n\n\n\n<p>The U.S. economy is showing signs of slowing, with the labour market beginning to exhibit slackness, along with easing activity and inflationary pressures.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Treasury yields fall as yen nears historic low<\/strong><\/h2>\n\n\n\n<p>U.S. Treasury yields fell on Wednesday, reflecting the market&#8217;s response to the soft economic data. Despite<a href=\"https:\/\/www.vtmarkets.com\/analysis\/us-dollar-slips-as-inflation-data-points-to-rate-cuts\/\"> the decline in the dollar and yields<\/a>, the yen (USD\/JPY) remained near a low of 161.96 per dollar, its weakest level since December 1986. This has led traders to prepare for potential Japanese government intervention, especially with U.S. markets closed for the July Fourth holiday.\u00a0<\/p>\n\n\n\n<p>The structural issue favouring a weaker yen remains, as the Bank of Japan is set to normalise interest rates only at a gradual pace, encouraging traders to push the dollar higher against the yen.<br><br><strong>Also read: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/japanese-authorities-signal-potential-intervention-in-the-face-of-weak-yen\/\">Japanese authorities signal potential intervention in the face of weak yen<\/a><\/strong><\/p>\n\n\n\n<p>The Japanese currency last strengthened 0.11% against the greenback to 161.53. The yen was also near an all-time low of 174.48 against the euro (EUR\/JPY) reached on Wednesday.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Sterling steady ahead of UK elections<\/strong><\/h2>\n\n\n\n<p>Elsewhere, sterling (GBP\/USD) held its ground ahead of UK elections, trading at $1.2744, up 0.03% on the day.<a href=\"https:\/\/x.com\/CNBCTV18News\/status\/1808420302667268530\"> Britain looks set to elect Labour Party leader Keir Starmer as its next prime minister<\/a>, potentially ending the Conservative Party&#8217;s 14-year tenure.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Labour Party is likely to return to power in the United Kingdom after 14 years, according to a forecast by polling company, Survation. Labour leader Keir Starmer is expected to become the next UK PM with his party winning 484 of the 650 seats, while Rishi Sunak&#39;s Conservative\u2026 <a href=\"https:\/\/t.co\/WLRtJQqnm6\">pic.twitter.com\/WLRtJQqnm6<\/a><\/p>&mdash; CNBC-TV18 (@CNBCTV18News) <a href=\"https:\/\/twitter.com\/CNBCTV18News\/status\/1808420302667268530?ref_src=twsrc%5Etfw\">July 3, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The euro (EUR\/USD) rose 0.04% to $1.079, maintaining its three-week high against the dollar. In the cryptocurrency market, Bitcoin (BTC\/USD) increased by 1.41% to $60,376.65.<\/p>\n\n\n\n<p>With the U.S. nonfarm payrolls report expected to show an increase of 190,000 jobs in June, a potential slowdown in job growth is anticipated. The yen&#8217;s situation requires ongoing vigilance for possible Japanese government intervention, especially given its historical precedents during illiquid trading periods.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The dollar faced pressure on Thursday following U.S. economic data that indicated slowing growth. Despite this, the yen remained weak, pinned near a 38-year low, prompting concerns about possible government intervention.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[28,38,30],"class_list":["post-14028","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-pound","tag-yen"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14028"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14028\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}