Will the U.S. dollar, which has risen against the euro, be able to hold its gains? We'll have to wait and see.

Will the U.S. dollar, which has risen against the euro, be able to hold its gains? We’ll have to wait and see.

10.06.2024

Last weekend, the U.S. dollar emerged as the strongest currency following the release of the U.S. May employment report, which showed increases in nonfarm payrolls and average hourly earnings.The EUR/USD pair fell from 1.0901 to 1.0800. It broke below the 200-day simple moving average (SMA) after trading above the 20-day moving average (MA) on the hourly chart. On the 4-hour chart, the pair has weakened to a level matching the recent low from two weeks ago, and on the daily chart, it is positioned just below the 200-day exponential moving average (EMA).

Among European currencies, the pound rose against the yen. The GBP/JPY pair climbed from 198.396 to 199.805, briefly breaking above the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, it is trading above the 20-period moving average (MA), and on the daily chart, it is rebounding as the 20-period MA acts as support. Since the daily RSI is also showing signs of a rebound from its downtrend, we will be watching for further gains in the pound during European trading hours.

Today’s economic indicators include Japan’s balance of payments and second preliminary estimate of first-quarter GDP at 8:50 a.m., Malaysia’s industrial production at 1:00 p.m., Japan’s Tankan survey at 2:00 p.m., Norway’s consumer price index at 3:00 p.m., and Turkey’s employment statistics, industrial production, and current account balance at 4:00 p.m.at 6:30 PM, remarks by German Bundesbank President Nagel, and at 2:00 AM, a U.S. 3-year Treasury auction. We will carefully monitor the situation to see if the U.S. dollar, which has risen against the euro, can maintain its current high levels.