Market participants are likely keeping a close eye on the direction of the U.S. dollar, which is facing resistance at higher levels.
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, dropping from the day’s high of 161.282 to 160.264. However, it gradually recovered thereafter.It ultimately closed at 160.886. On the daily chart, the RSI has exceeded 70, so traders should watch for potential downward price movements during European trading hours.
Among European currencies, the Swiss franc rebounded against the yen following the release of the June KOF Leading Index, which improved to 102.7 from 100.3 the previous month. The CHF/JPY pair recovered from 178.222 to 179.101.The 200-period EMA on the hourly chart acted as support. On the 4-hour chart, the pair rebounded from the -2σ Bollinger Band, 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, Japan’s Consumer Sentiment Index at 14:00, UK Nationwide House Prices at 15:00, Switzerland’s Manufacturing PMI at 16:30, UK Manufacturing PMI at 17:30, and Germany’sConsumer Price Index, at 10:45 PM US PMI Purchasing Managers' Index, at 11:00 PM US Construction Spending and US ISM Manufacturing Index, and at 2:00 AM a speech by ECB President Lagarde. We will be closely monitoring the direction of the US dollar, which is facing resistance on the upside.
Author: Keisuke Sakurai
