USDJPYForex today was traded in a risk-off environment where both the US Dollar and yields sunk, and gold surged. Also, U.S. stocks were under pressure on softer U.S. data and a mixed bunch of earnings.
The U.S. dollar was slightly weaker against a currency basket on Thursday as lower U.S. yields. Various economic data have given conflicting signs regarding the state of the U.S. economy, but that does not change the bigger picture of the dollar facing downward pressure due to an impending rate cut by the Federal Reserve
GBP/USD was almost unchanged at 1.2432. It hit a low of 1.2382 in the previous day, its weakest level since April 2017 amid growing fears over the prospect of a no-deal Brexit, before selling abated.
EUR/USD was a touch higher at 1.1234 after edging up 0.1% on Wednesday. The single currency’s gains were modest as it was restrained by expectations of easing from the European Central Bank as early as next week.
USD/JPY pair witnessed some follow-through weakness for the second consecutive session on Thursday and dropped to over two-week lows, around the 107.60 region in the last hour.
The Eurozone data docket it thin, so traders will continue to track US yields in Europe. The US Dollar may recover the lost ground in the North American session if the weekly jobless claims and regional manufacturing indices paint a positive picture of the US economy, forcing markets to again scale back expectations of aggressive easing by the US Fed later this month.
Oil prices rose on Thursday as data showed U.S. crude inventories fell more than expected last week. Oil prices were under pressure earlier this week following reports that the U.S. and Iran might begin talks soon, easing tension in the Middle East. However, Iran later denied the reports.
Gold prices inched up on Thursday after the IMF said the U.S. dollar is overvalued. The yellow metal received some support overnight after the IMF said the U.S. currency is overvalued by 6-12% based on near-term economic fundamentals.