Caution over the US dollar's downward trend?

Caution over the US dollar's downward trend?

04.08.2021

Yesterday’s stock market saw major U.S. indices rise, resulting in a trading session characterized by higher stock prices, lower oil prices, and flat interest rates. U.S. manufacturing orders for June, released yesterday, showed a 0.9% increase in durable goods and a 0.7% increase in non-defense capital goods excluding aircraft, marking the second consecutive month of growth and indicating strong demand.WTI crude oil fell sharply, briefly dipping below the key $70 level to $69.2, but is currently trading around $70.3.

With the yield on the 10-year U.S. Treasury note falling below 1.2% and trading sideways in the 1.17% range, the U.S. dollar continues to face resistance on the upside. The GBP/USD pair has risen slightly and is currently trading around 1.392. The AUD/USD pair has also formed an upward-sloping flag on the 4-hour chart and is currently trading around 0.739.

Today’s economic indicators include the UK Services PMI (final reading) at 5:30 PM, Eurozone retail sales at 6:00 PM, the US MBA Mortgage Applications Index at 8:00 PM, US ADP National Employment Report at 9:15 PM, and Canadian housing starts at 9:30 PM,22:00: Remarks by U.S. St. Louis Fed President Bullard, 22:45: U.S. Services PMI (final reading), 23:00: U.S. ISM Non-Manufacturing Index and remarks by U.S. Fed Vice Chair Clarida, and 23:30: U.S. weekly crude oil inventories.We will be watching closely to see if any trends emerge in currency strength and weakness midway through the week.

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