The U.S. dollar posted modest gains on Thursday, supported by a slight rebound in Treasury yields following dovish hints from the Federal Reserve earlier in the week. Despite softer-than-expected U.S. economic data, including weaker jobless claims and slowing service sector activity, the greenback remained resilient. Markets are now focused on upcoming non-farm payrolls data, which could offer further clarity on the Fed’s interest rate trajectory. Meanwhile, expectations for a potential rate cut in September remain intact, with investors closely analyzing macroeconomic trends for confirmation.
Elsewhere, the euro struggled as disappointing economic indicators from the Eurozone weighed on sentiment. The British pound also edged lower, pressured by election-related uncertainty and cautious Bank of England comments. In Asia, the Japanese yen weakened against the dollar, as traders continued to watch for any signs of intervention by Japanese authorities amid ongoing currency volatility. Overall, foreign exchange markets remain sensitive to central bank signals and data releases as global monetary policy divergence continues to shape trading behavior.