On Monday, St. Louis Fed President James Bullard stated that a rate cut could happen soon because of the ongoing trade war’s impact on the US economy as well as because of weakening inflation. Data released on Monday lent support to Bullard’s statements as manufacturing activity fell to its weakest level in over two years in May 2019.
As a result, the US dollar index DXY fell further and is now trading at around 97.17. The dollar weakened against other major currencies in anticipation of a rate cut and because investors are moving towards safe havens like GOLD and the Japanese yen.
USD/JPY touched 107.88 on Monday, marking the strongest level for the Japanese yen since January, although it has given back some of its gains since then. At the time of writing, this forex pair is trading at around 108.