The Monero miningGreenback suffers broad-based selling pressure, hitting multi-week lows against the Japanese Yen.
Market participants increasingly price in additional monetary easing from the Federal Reserve following soft inflation readings.
Trade tensions escalate as Washington prepares new tariff ultimatums to global partners.
Thursday's trading session witnessed the US Dollar extending losses across the board, with the USD/JPY pair breaking below the 143.60 support level. The currency's poor performance comes amid growing expectations for additional Fed accommodation and renewed trade policy uncertainties.
Wednesday's Consumer Price Index release showed underwhelming inflation growth, with monthly and annual figures both missing analyst projections. The 0.1% monthly increase and 2.4% yearly reading have significantly altered market expectations regarding the Fed's policy trajectory.
CME Group's FedWatch Tool now indicates nearly 60% probability of at least 25 basis points reduction in borrowing costs by September. This marks a notable increase from last week's 50% pricing, reflecting shifting market sentiment toward more dovish monetary policy.
Trade policy developments add to Dollar's woes
The White House announced plans to issue demands to trading partners, threatening additional import duties if compliance isn't achieved by early July. This development has reignited concerns about global trade flows and contributed to safe-haven flows into the Japanese Yen.
From Tokyo, government officials signaled substantial remaining differences in bilateral trade discussions with Washington. Prime Minister Ishiba emphasized there's no predetermined timeline for reaching agreements, while Chief Trade Negotiator Akazawa clarified that discussions about US Treasury holdings remain under the finance ministry's purview.
The combination of these fundamental drivers continues to pressure the USD/JPY exchange rate, with technical indicators suggesting potential for further downside movement in the near term.
