USDJPY - Dollar again is weaker the Yen
The dollar/yen was down 0.15 percent as of 08:10 GMT on Wednesday to trade at 109.10, with the political scene in Washington setting the tone as President Donald Trump broke with his own party to guarantee an extension of the US debt ceiling until December. The US dollar index, which gauges the greenback against six major currencies, was trading 0.24 percent lower at 92.03 by the time of this writing. Also weighing on the dollar was a US drafted UNSC resolution to place an oil embargo on North Korea and freeze all assets of Kim Jong Un. Donald Trump said that military action is not his first choice, but all alternatives remain on the table. In economic news, the Institute for Supply Management's nonmanufacturing index came in at 55.3 for August, up from a prior month reading of 53.9. Any reading above 50 indicates expansion in the service sector. Traders will be looking ahead to a series of fresh economic news and FOMC speakers later in the day. Initial jobless claims come first at 12:30 GMT, with 241,000 applications eyed. By the same time, second quarter nonfarm productivity and unit labor costs are up, with analysts forecasting a 1.3 percent and 0.3 percent build respectively. Members of the Federal Open Market Committee Loretta Mester and William Dudley are set to speak on monetary policy as of 16:15 GMT and 23:00 GMT. Their comments could make an impact on the greenback, with expectations for a third rate hike by December trending lower at 31 percent, according to CME Group’s FedWatch tool.