Attention is likely to focus on the weak U.S. dollar and Fed Chair Powell’s congressional testimony

Attention is likely to focus on the weak U.S. dollar and Fed Chair Powell’s congressional testimony

15.07.2021

Yesterday, the three major U.S. stock indices showed mixed performance, resulting in a market environment characterized by flat stock prices, lower interest rates, and a weaker U.S. dollar.Gold rose and is trading around $1,830. The VIX (fear index) fell back, dropping to 16.3. During his testimony before the U.S. Congress yesterday, Powell maintained his stance that "inflation is transitory" and remained cautious about transitioning to tapering.

In the foreign exchange market, the EUR/JPY pair is declining after hitting resistance at the 20-period moving average on the hourly chart. After peaking at 131.08 on Tuesday, the 13th, the pair fell to 129.89 during today’s Asian trading session, breaking below the key 130.00 level. If this downward trend continues, there is no support until around 129.6—this month’s low—so we should remain vigilant for the possibility of further declines.

Today, at 9:30 PM, we have U.S. initial jobless claims, the U.S. New York Fed Manufacturing Index, the U.S. Philadelphia Fed Business Outlook Index, and the U.S. Import Price Index; at 10:00 PM, Canadian existing home sales; at 10:15 PM, U.S. industrial production and the U.S. capacity utilization rate;at 10:30 PM, Fed Chair Powell’s Congressional testimony, and at 12:00 AM, remarks by Chicago Fed President Evans. We will be closely monitoring these events to see if the direction of the U.S. dollar, which has been the focus of attention, will become clear.

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