Will the U.S. dollar weaken and European currencies strengthen?

Will the U.S. dollar weaken and European currencies strengthen?

21.05.2021

Yesterday, the three major U.S. stock indices all rebounded, with the Dow Jones Industrial Average closing at $34,084, up $188 from the previous day. Although the U.S. Philadelphia Fed Manufacturing Index for May (month-over-month), released yesterday, came in at 31.5—below the forecast of 41.0—and the outlook for the next six months has also deteriorated, this did not appear to have a significant impact on stock prices.

In the foreign exchange market, the Swiss franc, which had been falling from its recent highs, has rebounded, and the CHF/JPY pair is currently trading around 121.3. It is now just shy of this year’s high of 121.53, while the USD/CHF pair is trading around 0.896.

Today, during European trading hours, UK retail sales will be released at 15:00, the Turkish consumer confidence index at 16:00, the French manufacturing/services PMI at 16:15, and the GermanManufacturing/Services PMI, at 17:00 the Eurozone Manufacturing/Services PMI, and at 17:30 the UK Manufacturing/Services PMI. As these are all preliminary figures, please be cautious of sharp price movements.Additionally, at 8:00 PM, ECB President Lagarde is scheduled to speak, and once U.S. trading hours begin, Canadian Retail Sales are scheduled for 9:30 PM, U.S. Manufacturing/Services PMI (flash estimates) for 10:45 PM, and U.S. Existing Home Sales for 11:00 PM. We should remain vigilant for price movements caused by position unwinding over the weekend and continue to closely monitor price trends with caution.

Past Market Reports

1. 17.04.2026New

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

2. 16.04.2026New

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

3. 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

4. 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?

5. 13.04.2026New

   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

6. 10.04.2026

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

7. 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?

8. 08.04.2026

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

9. 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

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed