- USD / JPY is moving into negative territory on Thursday.
- Weekly US jobless claims fell more than expected last week.
- Falling US Treasury yields weigh on USD / JPY.
The USD/JPY has risen towards the 105.50 region on Thursday, but has lost its traction at the start of the American session. At the time of writing, the pair is down 0.2% on the day trading at 105.20.
Falling US Treasury Yields Drag USD / JPY
US data on Thursday showed that initial jobless claims decreased at 48,000 to 709,000 last week and were much better than market expectations of 735,000. Additionally, the U.S. Bureau of Labor Statistics has reported that the core CPI consumer price index fell to 1.6% in October and it fell short of analysts’ estimate of 1.8%.
However, the market reaction to this data has been largely limited and the JPY has capitalized on the decline in US Treasury yields. Following the impressive rebound seen earlier in the week, yields on 10-year US Treasuries fell nearly 7% on Thursday, helping the safe-haven JPY outperform its rivals.
On the other hand, the DXY US Dollar Index has recovered some of its daily losses and remains flat near the 93.00 level, limiting the USD / JPY rally for the time being.
Later in the day, the FOMC chair, Jerome Powell, will speak at the Central Banking Forum of the European Central Bank (ECB).
Credits: Forex Street
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