Concerns over further downside potential for the U.S. dollar as it falls alongside declining U.S. Treasury yields

Concerns over further downside potential for the U.S. dollar as it falls alongside declining U.S. Treasury yields

24.08.2023

In the U.S. currency market yesterday, the dollar remained weak as the U.S. August Manufacturing and Services PMI, released yesterday, fell sharply from the previous reading of 52.0 to 50.4.With the Japanese yen emerging as the strongest currency yesterday, the USD/JPY pair fell from 145.890 to 144.581, breaking below the 145-yen threshold for the first time since August 11. With major economic indicators scheduled for release during U.S. trading hours today, investors should remain cautious of further declines in the U.S. dollar.

Despite the preliminary August Eurozone Consumer Confidence Index released yesterday showing a deterioration from -15.1 in the previous month to -16.0, the euro rose against the U.S. dollar due to the dollar’s weakness.The EUR/USD pair rose from 1.0802 to 1.0871. On the 4-hour chart, a bullish engulfing candle signaled a recovery to just below the 20-day moving average (MA). On the daily chart, the pair has rebounded after touching the 200-day exponential moving average (EMA), so we will be watching for directional cues during European trading hours.

Today, at 3:45 PM, France’s business sentiment index; at 5:00 PM, the Philippines’ unemployment rate; at 5:30 PM, Hong Kong’s trade balance;at 8:00 PM, the Turkish Central Bank (TCMB) policy rate and statement; at 9:30 PM, U.S. initial jobless claims, U.S. durable goods orders, and the U.S. Chicago Fed National Activity Index; at 11:00 PM, remarks by U.S. Federal Reserve Bank of Philadelphia President Harker; and at 12:15 AM, remarks by U.S. Federal Reserve Bank of Boston President Collins.We must remain highly vigilant regarding the downside potential of the U.S. dollar, which has been falling alongside declining U.S. Treasury yields.

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