Market participants may be wary of further downside potential for the U.S. dollar, which fell despite support from remarks by key officials

Market participants may be wary of further downside potential for the U.S. dollar, which fell despite support from remarks by key officials

21.04.2023

In yesterday’s U.S. currency markets, the dollar fell despite hawkish comments from Cleveland Fed President Mester, who stated that “further monetary tightening is necessary.” The USD/JPY pair dropped by just over 1 yen, from 134.974 to 133.803. It is currently trading just below the 200-period SMA on the hourly chart, suggesting the downtrend may continue.On the 4-hour chart, USD/JPY has broken below the trend line supported by the 20-MA, so we should pay close attention to the direction of the US dollar during US trading hours.

European currencies fell against the yen after the EU’s seasonally adjusted February trade balance, released yesterday, improved to a deficit of €100 million from the previous month’s deficit of €11.3 billion.The EUR/JPY pair fell from 147.860 to 146.634. It has pulled back from touching the 70 level on the daily RSI. On the daily chart, it has pulled back from the +2σ line of the Bollinger Bands, but since it remains above the 10-day moving average, we will be watching price action during U.S. trading hours.

Today, UK retail sales are scheduled for 15:00 Asia time; French manufacturing and services PMIs for 16:15 Europe time; German manufacturing and services PMIs for 16:30; Eurozone manufacturing and services PMIs for 17:00; UK manufacturing and services PMIs for 17:30; Canadian retail sales for 21:30 US time;U.S. Manufacturing/Services PMI at 22:45, and remarks by Fed Governor Cook at 29:35. We should remain cautious about the downside potential for the U.S. dollar, which has fallen despite a lack of support from key officials’ remarks.

Past Market Reports

1. 21.04.2026New

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

2. 20.04.2026New

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

3. 17.04.2026New

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

4. 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

5. 15.04.2026New

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

6. 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

7. 13.04.2026

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

8. 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?

9. 09.04.2026

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

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran