All eyes are on whether the plummeting U.S. dollar will regain its strength

All eyes are on whether the plummeting U.S. dollar will regain its strength

24.08.2022

In the U.S. currency market yesterday, the dollar plummeted following the release of the August Composite PMI (Purchasing Managers' Index), which fell to 45. GBP/USD rose by approximately 150 pips from this year's low of 1.1717 to 1.1876. It stalled near the 75-period moving average on the hourly chart and has been trading in a consolidation range during today's Asian session.On the 4-hour chart, the pair has pulled back from the 20-MA resistance level, so caution is advised regarding price movements heading into European trading hours.

Among European currencies, the euro continued to decline against the pound. The EUR/GBP pair fell by just under 40 pips from 0.8452 to 0.8417, marking its third consecutive day of losses. As the pair continues to test lower levels during today’s Asian trading session, we need to carefully assess whether it will extend its decline to the recent low of 0.8387 and break below it with a bearish candle.

Today’s schedule includes Japanese machine tool orders at 3:00 PM (Asia time), South African CPI at 5:00 PM (Europe time), U.S. MBA mortgage applications at 8:00 PM (Europe time), U.S. durable goods orders at 9:30 PM (U.S. time), and pending home sales at 11:00 PM (U.S. time).23:30 for U.S. weekly crude oil inventories, 26:00 for the U.S. 5-year Treasury auction, and 7:45 the following day for New Zealand’s second-quarter retail sales. Ahead of the Jackson Hole Symposium starting tomorrow, we need to closely monitor whether the U.S. dollar, which has plummeted, will regain its strength.

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?