TOKYO: Ahead of a speech by Federal Reserve Chair Jerome Powell later this week, traders were preparing for possibly significant revisions to US payroll statistics later in the day. As a result, the dollar fell to its lowest level against the euro this year on Wednesday.
The US dollar also fell below the eagerly anticipated 145 yen mark and lingered near the overnight low for sterling that has been below for more than a year.
US bond yields US10YT=RR, which fell to their lowest point since August 5—the day when yields plummeted to a level not seen in almost a year—were a major source of pressure as concerns about a recession over unexpectedly weak monthly jobs data surfaced.
“The USD has been moving lower due to a reduced yield premium in the US Treasury market,” stated Chris Weston, head of research at Pepperstone.
“As we can see in so many USD pairs of late, the USD just can’t find a friend in the market and is in free fall.”
