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

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

23.08.2021

Last weekend, the three major U.S. stock indices all rose, resulting in a market environment characterized by rising stock prices, higher interest rates, and stable crude oil prices. The Russell 2000 also rose steadily, trading around 2,167. Gold continues to consolidate just below the key $1,800 level and is currently trading in the $1,787 range.

The foreign exchange market opened without a significant gap.The yen is under selling pressure today, leading to a weakening trend. In particular, the CAD/JPY pair—which was driven by Canada’s June retail sales data released last weekend on the 20th, which exceeded expectations on a year-over-year basis—rebounded sharply from a session low of 84.67 and is currently trading at 86.10. The Canadian dollar is also showing strength against the U.S. dollar; the USD/CAD pair fell sharply from a session high of 1.294 and is currently trading around 1.276.

Today, during European trading hours, the French Manufacturing/Services PMI will be released at 16:15, the German Manufacturing/Services PMI at 16:30, the Eurozone Manufacturing/Services PMI at 17:00, and the UKmanufacturing and services PMIs, followed by the U.S. Chicago Fed National Activity Index at 21:30 U.S. time, the U.S. manufacturing and services PMIs at 22:45, and U.S. existing home sales at 23:00. We will be closely monitoring whether today’s economic releases will cause any shifts in the U.S. dollar, which has recently been rebounding.

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