USD/JPY: ISM Non-Manufacturing PMI

On Thursday, the US Dollar posted a sharp fall against the Yen after the ISM report showed softer-than-expected growth in non-manufacturing sectors. After the release, the USD/JPY exchange rate showed an immediate 0.09% fall to 110.259, a sign for a stronger bearish sentiment. The Institute of Supply Management reported that its Non-Manufacturing PMI dropped more than anticipated to 53.9 points in July after rising to 57.4 in the previous month. Weak recent reports are set to discourage the Federal Reserve to make one more rate hike this year and keep the Greenback biased downwards. In addition, the NFP report on Friday is more likely to disappoint forecasts, while wage component would determine whether higher interest rates are allowable.