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

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

31.05.2024

In U.S. trading yesterday, the dollar weakened as 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 gains for six consecutive days.

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/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 U.S. PCE deflator, and 10:45 PM: 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).

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   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

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   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?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed