Will the U.S. dollar weaken following the release of U.S. employment data? All eyes are on the market direction.

Will the U.S. dollar weaken following the release of U.S. employment data? All eyes are on the market direction.

02.08.2024

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

Among European currencies, the Swiss franc emerged as the strongest. While other yen crosses faced resistance, the franc rose slightly against the yen, rebounding from 169.482 to 172.193. On the 4-hour chart, it is trading just below the 10-period moving average. On the daily chart, it is positioned just below the 200-period simple moving average, and the market is now waiting to see if it will find support there. We will be watching to see if the Swiss franc shows further strength during European trading hours.

Today, at 8:50 AM, Japan’s monetary base; at 10:30 AM, Australia’s producer price index; at 3:30 PM, Switzerland’s consumer price index; at 3:45 PM, France’s industrial production and fiscal balance;at 4:30 PM, the Swiss Manufacturing PMI; at 8:15 PM, remarks by MPC member Pill; at 9:00 PM, Mexican employment data and Brazilian industrial production; at 9:30 PM, U.S. employment data; at 11:00 PM, U.S. new manufacturing orders and U.S. durable goods orders; and at 1:00 AM, remarks by Barkin, President of the Richmond Fed.We will be watching for any signs of a weakening US dollar in the US employment report to gauge the market’s direction.