Will the U.S. dollar's decline stabilize?

Will the U.S. dollar's decline stabilize?

04.10.2021

Last weekend, the three major U.S. stock indices all rose, resulting in a market environment characterized by rising stock prices, falling interest rates, and higher crude oil prices. WTI crude oil rose to $75.70, while gold edged up to the $1,760 range. Coal prices also rose, reaching a new record high. This comes amid reports that China is stepping up its efforts to secure resources.

In addition, the U.S. Personal Consumption Expenditures Price Index (month-over-month) for August, released last Friday, came in at 0.3% versus a forecast of 0.2%, suggesting that consumer spending picked up ahead of the new school year. However, the U.S. dollar continued to decline during U.S. trading hours last weekend, and the USD/JPY pair is currently trading around 111.01.That said, since USD/JPY is positioned just above the 200-day moving average on the hourly chart, we will be watching closely to see if a rebound occurs.

Today, Swiss retail sales and the Swiss Consumer Price Index are scheduled for 3:30 p.m. during Asian trading hours; the Turkish Producer Price Index is set for 4:00 p.m. during European trading hours; and Canadian housing starts are scheduled for 9:30 p.m. during U.S. trading hours, followed by U.S. new manufacturing orders at 11:00 p.m. and remarks by James Bullard, President of the St. Louis Federal Reserve Bank.With the U.S. jobs report coming up this weekend, attention is shifting toward the U.S. dollar. Therefore, I plan to closely monitor price movements at the start of the week while keeping a close eye on the correlation with European currencies.