Will the U.S. dollar, which fell on the back of weak U.S. employment data, recover? Or should we remain cautious?

Will the U.S. dollar, which fell on the back of weak U.S. employment data, recover? Or should we remain cautious?

11.03.2024

Last weekend, the U.S. dollar became the weakest currency immediately following the release of the U.S. February employment report on the 9th, as the unemployment rate worsened by 0.2 percentage points from the previous month’s 3.7% to 3.9%.GBP/USD rose from 1.2801 to 1.2891. An uptrend has formed along the 10-period moving average (MA) on the hourly chart. However, with the RSI reaching 79 on the 4-hour chart and the daily chart showing six consecutive bullish candles, traders should be cautious of a potential US dollar rebound.

European currencies fell against the yen as German industrial production for January, released on the 8th, deteriorated year-on-year from a 3.0% decline in the previous month to a 5.5% decline.The euro/yen pair fell from 162.168 to 160.602. On the 4-hour chart, the pair has fallen in a straight line down to the -3σ Bollinger Band, and with the RSI hovering around 42, we should be wary of a continued decline during European trading hours.

Today’s key economic indicators include Japan’s GDP and money supply at 8:50 a.m., Japan’s machine tool orders at 3:00 p.m., Norway’s consumer price index and Turkey’s employment statistics at 4:00 p.m., and remarks by a member of the Bank of England’s Monetary Policy Committee and a U.S. 3-year Treasury auction at 2:00 a.m. We need to watch closely to see if the U.S. dollar, which fell following the weaker-than-expected U.S. jobs report, will recover.