Attention is turning to whether the U.S. dollar, which has been weakening following the decline in first-quarter GDP (revised figures), can recover

Attention is turning to whether the U.S. dollar, which has been weakening following the decline in first-quarter GDP (revised figures), can recover

31.05.2024

In the U.S. currency market yesterday, the U.S. dollar weakened during U.S. trading hours after the revised U.S. first-quarter GDP figure, released yesterday, fell from the previous estimate of 1.6% to 1.3%. The USD/JPY pair fell from 157.668 to 156.370.The price fell to the 75-period moving average (MA) on the 4-hour chart. Although it has fallen below the 10-period MA on the daily chart, it remains above the 20-period MA, so we will be watching for a potential recovery during U.S. trading hours.

European currencies saw the Swiss franc rise against the yen after Switzerland’s first-quarter GDP, released yesterday, remained unchanged year-on-year at 0.6% compared to the previous reading. The CHF/JPY pair rose by approximately 2 yen, from 171.841 to 173.797, significantly surpassing this month’s previous high. On the 4-hour chart, the pair is moving along the +2σ line of the Bollinger Bands, and on the daily chart, it has extended its winning streak to six consecutive sessions.

Today’s economic indicators include South Korea’s Industrial Production at 8:00, Japan’s Tokyo Consumer Price Index and Employment Statistics at 8:30, Japan’s Industrial Production at 8:50, China’s Manufacturing and Services PMI at 10:30, France’s Consumer Price Index and Producer Price Index at 15:45, and the UK’sconsumer credit balances, 6:00 PM: Eurozone CPI, 9:00 PM: India’s real GDP and South Africa’s trade balance, 9:30 PM: Canada’s real GDP and the U.S. PCE deflator, and 10:45 PM: the U.S. Chicago PMI. We will carefully assess the resilience of the U.S. dollar, which has been weakening following the decline in first-quarter GDP (revised).