Investors should keep an eye on the weakening U.S. dollar
02.05.2022
- Rice · Manufacturing PMI
- Markets in the UK and China are closed for a public holiday
Last weekend, the U.S. dollar experienced a continuous slide from Asian trading hours through U.S. trading hours, with the USD/JPY pair falling from 131.10 to 129.30. The dollar also continued to decline against the euro, with the EUR/USD pair dropping from 1.081 to 1.047, hitting a new low for the year. However, the Dollar Index remains at a high level of 103.
European currencies surged against the U.S. dollar, with the pound emerging as the strongest currency. The GBP/USD pair rebounded from 1.245 to 1.261. However, since both the daily and weekly RSI for GBP/USD are below 30, we will need to closely monitor whether this rebound continues.
Today, at 3:00 PM CET, German retail sales will be released,at 16:30 Swiss Manufacturing PMI, at 16:50 French Manufacturing PMI, at 16:55 German Manufacturing PMI, and at 17:00 Eurozone Manufacturing PMI are scheduled to be released during European trading hours, followed by U.S. Manufacturing PMI at 22:45 and U.S. ISM Manufacturing PMI and U.S. Construction Spending at 23:00 during U.S. trading hours.Since the UK markets are closed today and Japan enters another long weekend starting tomorrow, we should remain vigilant regarding price movements ahead of Japan’s holiday break while also keeping an eye on the weakening US dollar.
Author: Keisuke Sakurai
