Market participants are keeping a close eye on the upside potential of the U.S. dollar, which has been surging on the back of strong U.S. employment data.

Market participants are keeping a close eye on the upside potential of the U.S. dollar, which has been surging on the back of strong U.S. employment data.

08.04.2024

Last weekend, the U.S. dollar rose following the release of the U.S. March employment report on the 5th, which showed the unemployment rate rising from 5.8% the previous month to 6.1%, while nonfarm payrolls increased from 275,000 to 303,000.The EUR/USD pair fell from 1.0847 to 1.0791, breaking below the 20-period moving average (MA) on the 4-hour chart. Since it has fallen below the 200-period simple moving average (SMA) support line on the daily chart, traders should watch for potential upside momentum in the U.S. dollar during European trading hours.

European currencies rose against the yen as the euro gained ground following the release of February retail sales data for the eurozone last weekend, which showed an improvement to a year-on-year decline of 0.7% from the previous month’s 1.0% drop.The euro/yen pair rose from 163.474 to 164.437, breaking above the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 75-period MA is acting as support, and the pair is rising again, so we will be watching to see if the euro strengthens during U.S. trading hours.

Today’s economic indicators include Japan’s balance of payments at 8:50, Malaysia’s industrial production at 13:00, Japan’s Tankan survey at 14:00, Switzerland’s employment statistics at 14:45, Germany’s industrial production and trade balance at 15:00,at 4:00 PM, Turkey’s Industrial Production and the Philippines’ BSP Overnight Lending Rate; at 10:00 PM, Israel’s Policy Rate; at 12:15 AM, remarks by SNB Governor Jordan of Switzerland; at 12:30 AM, remarks by MPC member Breeden of the UK; and at 8:00 AM the following day, remarks by Kashkari, President of the Federal Reserve Bank of Minneapolis.We will closely monitor the upside potential of the US dollar, which has been surging on the back of strong US employment data.