US Data Misses: USD/JPY, USDCAD Break Key Levels
- Disappointing US economic data rattled markets recently, as the Services PMI contraction registered at 49.9 against an expected 52.
- The report indicated that new orders, deliveries, production, and employment are all contracting.
- The US dollar weakened as an inevitable result of the disappointing data, hindering what would have been a third consecutive risk-on session.
US economic data sent ripples through the markets as a Services PMI contraction, with new orders and employment waning. This caused the US dollar to weaken and shifted market sentiment. USDCAD hit new lows and USDJPY broke a key pivot zone. The miss, registering at 49.9 against an expected 52, is a worrying sign highlighting growing economic weakness. The Bank of Canada’s decision to hold rates steady at 2.75% further influenced currency movements. The combination of contracting orders and employment alongside rising prices raises alarms about tariffs and economic health. As the primary_keyword, the US dollar is significantly impacted alongside PMI contraction.This critical facts is brought to you by News Directory 3. Discover what’s next for these currency pairs and what this could meen for your portfolio.
US Economic Data Concerns Rise amid PMI Contraction
Updated June 04, 2025
Disappointing US economic data rattled markets recently, as the Services PMI contraction registered at 49.9 against an expected 52. This miss triggered a downturn in equity markets, reversing earlier gains.
The report indicated that new orders, deliveries, production, and employment are all contracting. simultaneously, prices are increasing at the fastest rate since November 2022. This combination of factors has sparked concerns about the impact of tariffs and overall economic health.
The US dollar weakened as an inevitable result of the disappointing data, hindering what would have been a third consecutive risk-on session.
Simultaneously occurring, the Bank of Canada (BoC) held its key interest rate steady at 2.75% for the second consecutive time. A press conference followed the announcement.
The USDCAD pair is making new lows following the BoC’s decision and the weak US data. Immediate support lies within the higher timeframe support zone of 1.3560 to 1.36,with an oversold Relative Strength Index (RSI).
Similarly,the USDJPY pair broke through the 143.400 to 143.530 pivot zone, exhibiting considerable selling momentum. The RSI also indicates oversold conditions.
What’s next
Traders and investors will closely monitor upcoming economic releases and central bank communications for further clues about the trajectory of the US economy and potential policy responses.