With the US dollar’s strength taking a breather, will currency dynamics shift, or should we wait and see?

With the US dollar’s strength taking a breather, will currency dynamics shift, or should we wait and see?

29.09.2023

On the previous day, the U.S. dollar paused and weakened after Chicago Fed President Goolsbee expressed a dovish view, stating that “overemphasizing the classical relationship between inflation and unemployment could pose risks.” The USD/JPY pair fell from 149.620 to 149.138. While it has held above the key 149-yen level, resistance at higher levels has grown.As today is the last day of the month, we need to remain vigilant regarding the possibility of a correction in the U.S. dollar.

Despite the fact that Germany’s preliminary September CPI, released yesterday, fell to 4.5% year-on-year from 6.1% the previous month, the euro rose against both the yen and the U.S. dollar. The euro/yen pair rose from 156.708 to 157.877. During today’s Asian trading session, the pair continues to move higher. We will need to assess carefully whether the euro will maintain its strength against the yen and the yen will continue to weaken.

Today, at 3:00 PM: UK current account balance and GDP; Germany’s import price index and retail sales; South Africa’s money supply; at 3:45 PM: France’s producer price index and consumer price index; at 4:00 PM: Switzerland’s KOF Leading Index; at 4:40 PM: remarks by ECB President Lagarde; at 4:55 PM: Germany’semployment data, at 6:00 PM: EU Consumer Price Index, at 9:30 PM: Canada GDP, US personal income, and US wholesale inventories, at 10:45 PM: US Chicago PMI, and at 11:00 PM: US University of Michigan Consumer Sentiment Index. We will carefully assess whether the current stability in currency strength—following a pause in the US dollar’s rise—will shift.

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