Should we be wary of the direction of the U.S. dollar, which is falling due to weaker-than-expected economic data?

Should we be wary of the direction of the U.S. dollar, which is falling due to weaker-than-expected economic data?

30.08.2023

In yesterday’s U.S. currency trading, the U.S. dollar temporarily rose against the euro after the U.S. second-quarter housing price index, released yesterday, improved to 1.7% from 0.5% the previous month.The EUR/USD pair fell from 1.0838 to 1.0782, breaking well below the 20-period moving average on the hourly chart. However, subsequent economic data caused the U.S. dollar to weaken, and U.S. long-term bond yields also declined. The pair quickly rebounded to yesterday’s high of 1.0838 and eventually recovered to 1.0891. We will be watching closely to see if the euro continues to rise during today’s European trading session.

Despite the German GfK Consumer Confidence Index for September, released yesterday, coming in at -25.5—below the market forecast of -24.6—the euro rose against the yen as the Japanese yen weakened.The EUR/JPY pair rose from 158.238 to 159.061. The uptrend continues, with the 20-period moving average on the 4-hour chart providing support at the lower end. We will be watching to see if the euro maintains its strength during U.S. trading hours.

Today’s schedule includes the Swiss KOF Leading Index at 4:00 PM, UK consumer credit balances and money supply at 5:30 PM, the Eurozone consumer confidence index at 6:00 PM, the US MBA mortgage applications index at 8:00 PM, the German consumer price index at 9:00 PM, the US ADP employment report at 9:15 PM, and US wholesale inventories at 9:30 PM.US Q2 GDP and US GDP Core Deflator, at 11:00 PM US Existing Home Sales, and at 11:30 PM US Weekly Crude Oil Inventories. We must remain highly vigilant regarding the direction of the US dollar, which is currently falling due to poor economic data.

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