Will the U.S. dollar, which fell on the back of weak U.S. employment data, recover? Caution prevails.
11.03.2024
- Turkey: Employment Statistics
- Japan · Money Supply
Last weekend, following the release of the U.S. February employment report on the 9th—which showed the unemployment rate worsening by 0.2 percentage points from the previous month’s 3.7% to 3.9%—the U.S. dollar became the weakest currency immediately after the data was released.GBP/USD rose from 1.2801 to 1.2891, forming an uptrend along the 10-period moving average (MA) on the hourly chart. Since the RSI for GBP/USD has reached 79 on the 4-hour chart and the daily chart has shown six consecutive bullish candles, traders should be cautious of a potential rebound in the U.S. dollar.
European currencies fell against the yen after Germany’s January industrial production figures, released on the 8th, showed a year-over-year decline that worsened from the previous month’s -3.0% to -5.5%.The euro/yen pair fell from 162.168 to 160.602. On the 4-hour chart, the pair has been falling in a straight line down to the -3σ level of the Bollinger Bands, and with the RSI hovering around 42, traders should be wary of a continued decline during European trading hours.
Today’s economic indicators include Japan’s GDP and money supply at 8:50, Japan’s machine tool orders at 15:00, Norway’s Consumer Price Index and Turkey’s employment statistics at 16:00, remarks by a member of the Bank of England’s Monetary Policy Committee at 26:00, and a U.S. 3-year Treasury auction.We need to remain vigilant to see if the U.S. dollar, which fell following the weaker-than-expected U.S. jobs report, will recover.
Author: Keisuke Sakurai
