Dollar Under Pressure as Treasury Yields Fall

The US dollar is under pressure due to declining long-term US Treasury yields. The 30-year Treasury yield fell by around 9 basis points to 5.19%. This decline has weakened one of the key sources of support for the dollar and is particularly significant for USD/JPY, which remains highly sensitive to movements in the US bond market.

Despite the Federal Reserve's hawkish tone from the recently released FOMC minutes, the market's attention now turns to the latest US economic data. Weaker-than-expected figures could put additional pressure on the dollar, while stronger releases could restore support for the US currency and trigger a recovery in both USD/JPY and USD/CAD.

Today, markets will focus on key events such as the Philadelphia Fed Manufacturing Index, expected to fall to 24.1 from 41.4, and initial jobless claims at 210,000. Weaker-than-expected figures could extend the dollar's correction and increase downside pressure on USD/JPY and USD/CAD.