- USD / JPY continues to push lower early in the US session.
- USD struggles to find demand after initial jobless claims data.
- The yield on the 10-year US Treasury is losing more than 1% on Thursday.
The USD/JPY it extended its daily decline early in the US session and hit its lowest level in two weeks at 109.00. At time of writing, the pair was down 0.7% on the day at 109.08.
DXY falls towards 92.00
Selling pressure surrounding the dollar appears to be weighing on USD / JPY on Thursday. After data released by the U.S. Department of Labor showed that initial weekly jobless claims rose to 744,000, compared to analysts’ estimate of 680,000, the U.S. Dollar Index (DXY) fell to a daily low of 92.14. At the moment, the DXY is shedding 0.28% at 92.17.
Additionally, the benchmark 10-year US Treasury yield is dropping 1.7% on the day, increasing the downward pressure on USD / JPY.
Meanwhile, the major Wall Street indices appear to open in positive territory with S&P 500 futures rising 0.3%. If risk flows begin to dominate financial markets in the second half of the day, the JPY could struggle to maintain its strength and limit the decline in the USD / JPY. Later, St. Louis Fed President James Bullard, Minneapolis Fed President Neel Kashkari, and FOMC President Jerome Powell will deliver speeches.