Should we keep an eye on the upside potential of the strengthening U.S. dollar?

Should we keep an eye on the upside potential of the strengthening U.S. dollar?

29.03.2022

The U.S. dollar strengthened against the pound yesterday, with the GBP/USD pair falling by about 110 pips from 1.318 to 1.306.Factors contributing to the dollar’s rise included the release of U.S. wholesale inventories (flash estimate), which rose to 2.1% from the previous reading of 0.8%, and the yen’s relative weakness following the Bank of Japan’s announcement of fixed-rate operations. The yield on the 10-year U.S. Treasury note briefly touched 2.55% but is currently trading around 2.47%.

European currencies are trading in a tight range against the U.S. dollar, with the EUR/USD pair fluctuating within a very narrow range between 1.094 and 1.099. The EUR/USD is currently trading just above the 20-period moving average on the 4-hour chart, with price action indicating that the market is searching for direction. Therefore, it would be advisable to open a position only after the price breaks through the recent highs or lows at 1.094 or 1.099.

Today, at 3:45 PM, the French Consumer Confidence Index; at 5:30 PM, UK Mortgage Approvals; at 10:00 PM, the US S&P/Case-Shiller Home Price Index; and US Fed President Williams:Remarks by NY Fed President Williams, the U.S. Consumer Confidence Index, and the U.S. JOLTS Survey; at 11:45 PM, remarks by U.S. Philadelphia Fed President Harker; at 1:30 AM, remarks by Swiss SNB Vice Chairman Zubruck; and at 2:00 AM, the U.S. 7-year Treasury auction. We will be closely monitoring whether today’s economic releases will cause any shifts in the currently firm U.S. dollar.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   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

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   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?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?