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    Dollar down against the yen, up against the euro, while pound under new pressure

    The greenback inched down against the yen and rose higher against the single currency on Friday, as ongoing uncertainty following the U.K.’s vote to leave the EU and soft Chinese manufacturing data boosted demand for safe-haven assets.  
    BoE Governor, Mark Carney, said on Thursday that more stimulus measures may be needed over the course of the summer, fueling speculation of an upcoming rate cut.
    The British pound was flat at 1.3314 against the dollar, after reaching 1.35 on Thursday. The sterling, which fall almost 8% soon after the Brexit vote, has lost a further 2.6% since.
    The cable’s decline added pressure on the single currency, which fell 0.2% to 1.1079 against the dollar, extending an overnight drop from 1.1155, its highest in six days, as markets continued to digest Britain’s surprising decision last week to exit the European Union.

    In the meantime, market sentiment remained fragile, following the release of a report from China indicating that the Caixin manufacturing purchasing managers’ index dropped to 48.6 in June from 49.2 in May, as opposed to expectations for a fall to 49.1.
    China’s official manufacturing PMI print came in at 50.0 in June from 50.1 a month before, in accordance with expectations.
    The dollar fell 0.48% to trade at 102.71 against the yen. A report released earlier in Japan indicated that household spending decreased by 1.5% in May, disappointing expectations for a 0.2% decline.

    Another report revealed that Tokyo’s consumer price index dropped to an annualized rate of 0.5% in June, while core CPI that excluded fresh food prices, also fell by 0.5%.
    Furthermore, the Bank of Japan reported that its Tankan manufacturing index was unchanged at 6 in the three months to June, exceeding expectations for a 4 reading.
    The U.S. dollar index, which tracks the greenback’s performance against a group of six other major currencies, was last up 0.15% to 96.09.

    Investors will be looking later in the session at the final manufacturing PMIs for June and the ISM Manufacturing index.

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