With the Dow hitting a new high, all eyes are on the direction of the U.S. dollar

With the Dow hitting a new high, all eyes are on the direction of the U.S. dollar

16.04.2021

Yesterday, the Dow Jones Industrial Average hit a record high, sparking a risk-on market characterized by rising stock prices, a weaker dollar, and lower interest rates. Crude oil rose to $63.60 for the first time in about a month, while gold also rose in inverse proportion to the U.S. dollar and is currently trading around $1,764. The market reacted positively to the release of the U.S. Philadelphia Fed Manufacturing Index for April, which came in at 50.2—its highest level in 48 years.

In the foreign exchange market, cross-yen pairs are divided into those trending upward and those trending downward; EUR/JPY and USD/JPY are holding steady, while GBP/JPY has hit a lower high and is showing signs of stagnation. Since EUR/GBP is rising and GBP/USD is falling, we should remain vigilant about a potential decline in GBP/JPY.

Today, at 6:00 PM, the Eurozone Consumer Price Index and trade balance will be released, followed by remarks from Bank of Canada Deputy Governor Kanif andWoods, Deputy Governor of the BOE; at 8:30 PM, Turkey’s Housing Price Index; at 9:15 PM, Canada’s Housing Starts; at 9:30 PM, U.S. Housing Starts and Building Permits; at 11:00 PM, the University of Michigan Consumer Sentiment Index; and at 11:45 PM, remarks by Kaplan, President of the Dallas Fed.We will be closely monitoring how the recent rise in stock prices and decline in interest rates impact the foreign exchange market.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 13.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 07.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran