Should we keep an eye on the direction of the U.S. dollar, which is falling due to lower interest rates?

Should we keep an eye on the direction of the U.S. dollar, which is falling due to lower interest rates?

12.08.2021

Yesterday, the Dow Jones Industrial Average and the S&P 500 hit new record highs in the U.S. market, leading to a market trend characterized by rising stock prices, falling interest rates, and declining commodity prices.Following the passage of the infrastructure investment bill yesterday, U.S. President Biden stated that the $3.5 trillion spending plan would not accelerate inflation, causing infrastructure-related stocks such as Caterpillar to rise. The yield on the 10-year U.S. Treasury note has fallen from a peak of 1.37% to the 1.35% range.

Following a decline in the yield on 10-year U.S. Treasuries, the U.S. dollar retreated, causing the GBP/USD pair—which had been trending lower—to rebound. It recovered from this month’s low of 1.380 to 1.388.The AUD/USD pair also rebounded, recovering from 0.732 to 0.738. Since the AUD/USD pair has been forming higher lows on the hourly chart, we need to monitor the direction of the U.S. dollar and assess whether the pair will continue its upward momentum.

Today, at 3:00 PM, the UK will release its Q2 GDP (flash estimate), industrial production, manufacturing output, and trade balance; at 4:00 PM, Turkey will release its industrial production; at 6:00 PM, the Eurozone will releaseIndustrial Production, at 8:00 PM: Turkey’s TCMB policy rate and statement, at 9:30 PM: U.S. Initial Jobless Claims and U.S. Producer Price Index, at 11:00 PM: U.S. Weekly Natural Gas Inventories, and at 2:00 AM: U.S. 30-Year Treasury Auction.We will carefully monitor whether today’s U.S. 30-year Treasury auction goes smoothly and whether it leads to a shift in the direction of the U.S. dollar.

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