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Jul 7 2017, 12:49 AM (+06) | Fortfs.com

The dollar/yen was down 0.21 percent to trade at 113.01 as of 05:10 GMT, with players digesting Fed’s June minutes while looking ahead of employment data later in the week.

 

Factory orders dropped 0.8 percent in May, below the 0.5 percent decline initially forecasted by analysts. Downbeat data increased concerns over future Federal Reserve interest rate hikes this year, which ultimately weighed on the US dollar.

 

According to Fed funds tracked by CME Group’s FedWatch tool, traders are currently pricing in more than a 50.5 percent probability of a rate move by December.

 

Fed’s June 13-14 meeting minutes showed divided waters inside the Federal Open Market Committee over the future rate increases and the time to start reducing its huge balance sheet.

 

The document offered no clues on the timing for the next interest rate hike and attention has now shifted to Friday’s nonfarm payrolls and unemployment rate.

 

Investors will be paying close attention to these reports as labor market conditions are one of Fed’s most important indicators of a healthy economy and argument for further policy tightening.

 

The US dollar index, which tracks the greenback’s strength against six major rivals, was 0.02 percent lower to trade at 96.04 as of 05:10 GMT in the light of recent disappointing data.

 

The pair is trading inside a channel and it will likely remain on it until employment data is released on Friday. Ahead in the session, ADP’s employment report, initial jobless claims, Markit services PMI and ISM non-manufacturing PMI will be eyed.

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