Should We Keep a Close Eye on the Direction of the U.S. Dollar, Which Is Struggling to Gain Ground?
01.07.2024
- Swiss Manufacturing PMI
- U.S. PMI (Purchasing Managers' Index)
Last weekend, the U.S. dollar faced resistance as the U.S. May PCE deflator, released on June 28, was revised downward from 2.7% to 2.6% year-over-year.The USD/JPY pair fell against the yen immediately after the release of the data, dropping from its intraday high of 161.282 to 160.264. However, it gradually recovered afterward and ultimately closed at 160.886. Since the RSI on the daily chart has exceeded 70, traders should watch for potential downward price movements during European trading hours.
Among European currencies, the Swiss franc rebounded against the yen after the June KOF Leading Index was released, showing an improvement to 102.7 from the previous month’s 100.3. The CHF/JPY pair recovered from 178.222 to 179.101.The 200-period EMA on the hourly chart served as support and held. On the 4-hour chart, the pair rebounded from the -2σ level of the Bollinger Bands, and on the daily chart, the uptrend along the 10-period MA continues.
Today’s schedule includes the Malaysia Manufacturing PMI at 9:30, Australian Retail Sales at 10:30, the Japan Consumer Sentiment Index at 14:00, UK Nationwide House Prices at 15:00, the Switzerland Manufacturing PMI at 16:30, and the UKmanufacturing PMI, at 21:00 the German Consumer Price Index, at 22:45 the U.S. PMI Purchasing Managers’ Index, at 23:00 U.S. Construction Spending and the U.S. ISM Manufacturing Index, and at 28:00 remarks by ECB President Lagarde.We will carefully monitor the direction of the U.S. dollar, which is facing resistance on the upside.
Author: Keisuke Sakurai
