Will the U.S. dollar weaken following the U.S. employment report? All eyes are on the market’s direction.

Will the U.S. dollar weaken following the U.S. employment report? All eyes are on the market’s direction.

02.08.2024

In the U.S. currency market the previous day, the U.S. dollar traded in a seesaw pattern against the yen. The USD/JPY pair fluctuated between 148.510 and 150.883, with price action straddling the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair faced resistance near the 10-period moving average, and on the daily chart, the RSI has fallen to 19. Since the monthly candle for July, which has now closed, broke below the 10-period moving average support line, traders should pay close attention to price action at the start of the month.

Among European currencies, the Swiss franc emerged as the strongest. The franc/yen pair rose slightly while other yen crosses faced resistance.It rebounded from 169.482 to 172.193. On the 4-hour chart, it is positioned just below the 10-period moving average (MA). On the daily chart, it is positioned just below the 200-period simple moving average (SMA), and the market is now testing whether it will find support there; therefore, we will be watching to see if the Swiss franc shows a further rebound during European trading hours.

Today’s schedule includes Japan’s monetary base at 8:50, Australia’s Producer Price Index at 10:30, Switzerland’s Consumer Price Index at 15:30, France’sIndustrial Production and France’s Budget Balance, at 16:30 the Swiss Manufacturing PMI, at 20:15 remarks by MPC member Pill of the Bank of England, at 21:00 Mexico’s Employment Statistics,Brazil’s Industrial Production, at 21:30 U.S. Employment Report, at 23:00 U.S. Manufacturing New Orders and U.S. Durable Goods Orders, and at 25:00 remarks by U.S. Richmond Fed President Barkin. We will be watching for any signs of a weakening U.S. dollar following the U.S. Employment Report to gauge the market’s direction.