Will the U.S. dollar remain strong amid falling long-term interest rates?

Will the U.S. dollar remain strong amid falling long-term interest rates?

21.06.2021

Last weekend, stock prices continued to fall in the U.S. market, resulting in a market environment characterized by falling stock prices, lower interest rates, and higher oil prices. Although WTI crude oil fell in the first half of the week, it rebounded toward the end of the week and is currently trading around $71.30. Gold continued to decline and is trading around $1,774. The semiconductor index (SOX) also fell and currently stands at 3,152.

The foreign exchange market is seeing notable weakness in the pound. GBP/USD has fallen for four consecutive days, dropping about 350 pips over the past week. It is currently trading around 1.380.From a technical perspective, the pair has broken below the daily support line, and with the next support level around 1.366, this is a situation where we should be cautious about further downside potential. GBP/JPY is also falling, and the next target is likely to be around 150.6, near the weekly 20-day moving average.

Today’s key events include remarks by ECB President Lagarde at 9:30 PM ET, followed by the Chicago Fed National Activity Index at 10:30 PM ET; remarks by St. Louis Fed President Bullard at 10:30 PM ET; remarks by ECB President Lagarde at 11:15 PM ET; and remarks by New York Fed President Williams at 1:00 AM ET.Since prices moved significantly last week following remarks by St. Louis Fed President Bullard, we should remain vigilant regarding his comments today as a precaution.

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