Ella 
The dollar moved higher and the yen gained as yields rose.
Japan’s 10-year bond yield fell below 1% for the first time in two weeks.
The dollar may struggle as mixed economic data fueled speculation of a rate cut by the Federal Reserve.
The Japanese yen (JPY) gave up gains on Thursday, while the U.S. dollar (USD) rose as U.S. Treasury yields rose. However, growing speculation of a rate cut by the Federal Reserve in September could limit upside for the dollar and USD/JPY. Investors may be awaiting key U.S. employment data on Friday, including average hourly earnings and non-farm payrolls.
Japanese bond yields have retreated from recent highs, with the benchmark 10-year government bond yield falling below 1% for the first time in two weeks. However, real wages in Japan fell for the 25th consecutive month in April as domestic inflation continued to outpace wage growth. The data will make it more difficult for the Bank of Japan (BoJ) to normalize policy.
The U.S. dollar index (DXY), which measures the value of the greenback against six other major currencies, faced challenges after the release of mixed economic data from the United States. This fueled speculation of a rate cut by the Federal Reserve (Fed). The probability that the Federal Reserve will cut interest rates by at least 25 basis points in September has surged to nearly 70.0%, up from 47.5% a week ago, according to the CME Fed Watch Tool.
