Market participants are watching closely to see if currency strength shifts in response to remarks by key figures

Market participants are watching closely to see if currency strength shifts in response to remarks by key figures

05.06.2023

Last weekend, the U.S. dollar rose against the euro following the release of the U.S. May employment report on Friday, the 2nd, which showed that average hourly earnings had declined from 4.4% to 4.3% year-over-year.The EUR/USD pair fell by approximately 70 pips from 1.0778 to 1.0704. Although it had broken above the 20-period moving average (MA) on the 4-hour chart, it reversed lower after encountering resistance at the 75-period MA. On the higher timeframe daily chart, the EUR/USD pair is being capped by the 10-period MA, so we need to watch carefully to see if it will extend its decline and break below the recent low.

Among European currencies, the pound fell against the U.S. dollar ahead of today’s release of the services PMI. The GBP/USD pair dropped by about 100 pips from 1.2544 to 1.2441.This pullback occurred immediately after the pair broke above the daily 20-day moving average (MA). However, on the higher timeframe (weekly chart), GBP/USD is finding support at the 20-day MA. Therefore, if the decline continues, we will be watching closely to see if the pair breaks below the support level at 1.2309.

Today’s schedule includes Germany’s trade balance at 3:00 PM, Switzerland’s CPI at 3:30 PM, Turkey’s CPI at 4:00 PM, France’s Services PMI at 4:50 PM, Germany’s Services PMI at 4:55 PM, the Eurozone Services PMI at 5:00 PM, the UK Services PMI at 5:30 PM, and the EurozoneProducer Price Index at 18:00, U.S. PMI at 22:45, remarks by ECB President Lagarde at 22:00, U.S. ISM Non-Manufacturing Index at 23:00, and U.S. Durable Goods Orders are scheduled. We will carefully assess whether currency strength shifts in response to these key figures’ 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