USD/JPY fall to weekly lows after US data USDJPY
Downward revision of Unit Labor Cost and weak ISM PMIs increased the dovish bets on the Fed.The USD/JPY continues to decline and fell to a low since May 24 as the weak, driven by poor ISM PMIs and lower Q1 Unit Labor Cost, lead markets to anticipate a higher likelihood of no rate hike by the Fed at the June 13-14 meeting. In that sense, the decline in the US bond yields favors the downward trajectory of the pair.The Automatic Processing Inc.
In that sense, as the economic activity in the US continues to weaken while the Fed maintains its target rate at a considerably restrictive level, markets now discount higher possibilities of the Fed not hiking in the next meeting on June 13-14. As a reaction, US bond yields declined across the board with shorter-term rates seeing more than 1% declines on the day and applied further selling pressure on the US Dollar.
In that sense, according to the CME FedWatch tool, investors are betting on 71.6% probabilities on theFor Friday’s session, the US for May from are expected to show an increase of 190K below the previous 253K while hourly earnings to stagnate at 0.4% and the Unemployment Rate to slightly increase to 3.5%.On the 4-hour chart, indicators fell to negative territory indicating that the bears have the upperhand for the immediate short term. It's worth mentioning that the Relative Strength Index indicator is approaching the oversold threshold and may suggest that some consolidation may be incoming.is seen at the level at 139.
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