The U.S. dollar held steady near a seven-week low on Thursday while the Japanese yen weakened, as currency markets adopted a cautious stance ahead of the critical U.S. non-farm payrolls report.
Citigroup analysts see a reported joint currency intervention by the U.S. and Japan as a sign of American support for the yen, underpinning a long-term bullish view despite near-term rebound risks.
Bank of America has sharply raised its year-end forecast for the Japanese yen to 149 per dollar, arguing that joint U.S.-Japan intervention has removed key constraints and will be followed by faster Bank of Japan rate hikes.
The British pound slipped against the U.S. dollar as traders braced for the key U.S. non-farm payrolls report. The move reflects broad dollar demand rather than UK-specific factors, with market focus now on potential signals for Federal Reserve policy.
The British pound and euro dipped on Thursday as the U.S. dollar held steady, with currency traders taking a cautious stance ahead of Friday's pivotal non-farm payrolls data.
Yields across the U.S. Treasury curve fell sharply after the Labor Department reported an unexpected decline in nonfarm payrolls for July, leading markets to drastically lower expectations for a Federal Reserve rate hike in September.
The latest U.S. Commodity Futures Trading Commission data reveals a significant increase in open interest for major stock index futures, while currency markets showed mixed activity with the Mexican peso gaining and the British pound declining.
The latest CFTC Commitments of Traders report reveals a significant increase in open interest for S&P 500 and Dow Jones futures, alongside mixed positioning in major currency markets for the week ending August 4.
The U.S. Treasury has sanctioned Dubai-based crypto exchange Shelbit and its founder for allegedly processing millions of dollars for Iran’s Islamic Revolutionary Guard Corps, following a Reuters investigation.
