- CB Consumer Confidence Index drops to 121.5 in June.
- New home sales contract by 7.8% on a monthly basis in May.
- 10-year US T-bond yields drops below critical 2% mark.
The USD/JPY pair came under a renewed selling pressure in the American session and dropped below the 107 mark amid the ongoing broad USD weakness and the stronger demand for safe havens. As of writing, the pair was trading at 106.92, losing 0.33% on a daily basis.
Today’s data from the U.S. revealed that the consumer confidence continued to weaken in June with the Conference Board’s Consumer Confidence Index dropping to its lowest level since 2017 at 121.5 from 131.1 in May to make it difficult for the US Dollar Index to stage a recovery despite the extreme oversold conditions. Other data from the U.S. showed that new home sales declined by 7.8% in May to miss the market expectation of +1.9% and the Richmond Fed Manufacturing Index retreated to 3 in June from 5 in May.
Now markets are waiting for FOMC Chairman Powell to deliver his remarks on the monetary policy later in the session. Earlier today, NY Fed President Williams didn’t touch on the policy outlook in his prepared remarks. At the moment, the US Dollar Index is unchanged on the day at 96.
Meanwhile, the fact that the 10-year US Treasury Bond yield dropped below the critical 2% mark keeps the bearish pressure on the strongly correlated USD/JPY pair intact. Just recently, U.S. President Donald Trump tweeted out that any attack by Iran on anything American will be met with “great and overwhelming force,” suggesting that the tension in the Middle East is unlikely to ease anytime soon.
Technical levels to watch for
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