Concerns Over Further Declines in the U.S. Dollar as U.S. Treasury Yields Fall
24.08.2023
- U.S. Durable Goods Orders
- U.S. Initial Unemployment Insurance Claims
In the U.S. currency market yesterday, the U.S. 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, traders should remain cautious of further declines in the U.S. dollar.
European currencies rose against the U.S. dollar due to the dollar’s weakness, even though the preliminary August consumer confidence index for the eurozone, released yesterday, deteriorated from -15.1 in the previous month to -16.0.The EUR/USD pair rose from 1.0802 to 1.0871. With a bullish engulfing candle on the 4-hour chart, it has recovered 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’s schedule includes: French Business Sentiment at 15:45, Philippine Unemployment Rate at 17:00, Hong Kong Trade Balance at 17:30, Turkey’s TCMB Policy Rate and Statement at 20:00, U.S. Initial Jobless Claims and U.S. Durable Goods Orders at 21:30,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 for the U.S. dollar, which has been falling alongside declining U.S. Treasury yields.
Author: Keisuke Sakurai
