- USD/JPY has dipped to almost 148.00 as interest in the Japanese yen as a safe haven grows.
- US Vice President Vance indicates that partial government shutdowns may occur.
- Investors are awaiting the August JOLTS job data from the US.
The USD/JPY pair continued its downward trend on Tuesday, sliding 0.35% to about 148.00 during the European trading hours. This decline is fueled by a weakening US dollar, driven by concerns over a potential government shutdown in the US, which has led to heightened demand for the safer Japanese yen.
Currently, the US Dollar Index (DXY), which measures the dollar against six major currencies, is at 97.80, reflecting a drop of 0.15%.
The prospect of partial government shutdowns seems to have increased following Vice President JD Vance’s comments after a meeting with Democrats. Vance expressed concerns, stating, “I think we’re heading for a shutdown because Democrats aren’t doing the right thing,” during an interview with CNBC.
Additionally, both the U.S. Department of Labor and the Commerce Department have warned that the release of key economic data—such as employment figures—could be halted if the Senate fails to approve a suspension bill by Tuesday’s midnight deadline.
On Tuesday, attention will be on the US JOLTS Job Openings data for August, which is set to be released at 14:00 GMT. Employers are expected to announce around 7.1 million new job openings, slightly lower than the previous reading of 7.18 million.
