The USD fell against its major counterparts today after the release of negative economic data fueled concerns that the U.S economic recovery is slowing. The Institute for Supply Management's manufacturing index fell to 56.2 in June from 59.7 in May, while U.S. pending home sales fell 30%in May. Putting further pressure on the USD was the release of the Unemployment Claims data which showed an increase of 13,000 new people filing for unemployment insurance from last week. This result is especially important ahead of the release of the Non Farm employment data today at 12:30 GMT.

The USD seems to be loosing its safe heaven appeal in light of the poor economic data and stagnate labor market. Concerns about weakness in the U.S economy are proving very negative for the greenback, particularly versus the yen. The dollar dropped 0.9% against the yen to 87.60 yesterday. At one point, the pair touched 86.97, its weakest level since Dec. 2.