Will the U.S. dollar, now the world’s strongest currency, maintain its recovery? Keep an eye on the direction it takes.

Will the U.S. dollar, now the world’s strongest currency, maintain its recovery? Keep an eye on the direction it takes.

05.12.2023

In the previous day’s U.S. trading session, the U.S. dollar emerged as the strongest currency. The USD/JPY pair rebounded by approximately 120 pips, rising from 146.229 to 147.450, recovering from its lowest level in the past three months. However, the daily RSI for USD/JPY is trending downward from 70, leaving room to fall to 30, which is considered an oversold level.We will need to carefully assess whether the US dollar against the yen can maintain its upward momentum ahead of next week’s FOMC meeting.

European currencies saw the Swiss franc fluctuate against the yen after yesterday’s release of Switzerland’s November Consumer Price Index (CPI) showed a year-on-year decline of approximately 0.3 percentage points, from 1.7% in the previous month to 1.4%. The CHF/JPY pair fell by about 110 pips to 167.717 before recovering to its opening level.During today’s Asian trading session, the pair is showing an upward bias. We will need to monitor price action during European trading hours to see if the franc continues to rise against the yen.

Today’s schedule includes Sweden’s current account balance at 4:00 PM, France’s industrial production at 4:45 PM, France’s services PMI at 5:50 PM, Germany’s services PMI at 5:55 PM, the Eurozone’s services PMI at 6:00 PM, the UK’s services PMI at 6:30 PM,at 7:00 PM the Eurozone Producer Price Index, at 9:00 PM Brazil’s Q3 GDP, at 10:55 PM U.S. Redbook Large Retailer Sales, at 11:45 PM the U.S. Services PMI, at 12:00 AM U.S. JOLTS Job Openings, the U.S. ISM Non-Manufacturing PMI, and remarks by Fed Governor Bowman.We will carefully assess whether the US dollar, now the strongest currency, can sustain its recovery.

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