Should we keep an eye on the direction of the rising U.S. dollar?

Should we keep an eye on the direction of the rising U.S. dollar?

27.05.2021

Yesterday, U.S. stock prices rose slightly, leading to a market environment characterized by rising stock prices, a stronger U.S. dollar, and lower interest rates. The Dow Jones Industrial Average closed at $34,323, up 0.03% from the previous day, with shares of sportswear giant Nike and construction equipment giant Caterpillar seeing strong buying. The Semiconductor Index (SOX) also rose slightly, up 0.2% from the previous day.

In the foreign exchange market, the AUD/USD pair continues to trade within a range, currently hovering near the lower boundary at 0.774. From a technical perspective, it appears to be forming a triple top on the daily chart; however, since the highs are rising, we should keep a close eye on the direction of the U.S. dollar and adopt a wait-and-see approach, ready to follow the trend should there be a significant move.

Today’s schedule includes the Swiss trade balance at 3:00 PM, remarks by a member of the Bank of England’s Monetary Policy Committee at 8:00 PM, and remarks by Bundesbank President Weidmann at 9:00 PM. In U.S. time, the U.S. initial jobless claims, durable goods orders, and first-quarter GDP (revised) are scheduled for 9:30 PM,U.S. personal consumption at 9:00 PM, U.S. pending home sales at 11:00 PM, U.S. weekly natural gas inventories at 11:30 PM, the U.S. Kansas City Fed Manufacturing Activity Index at midnight, and a U.S. 7-year Treasury auction at 2:00 AM. I intend to monitor the situation closely, comparing currency strength and weakness to see if there will be significant changes in price movements at the end of the month.

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