Market participants are likely watching for further downside potential in the U.S. dollar, which has become the weakest currency following the release of the disappointing U.S. July jobs report

Market participants are likely watching for further downside potential in the U.S. dollar, which has become the weakest currency following the release of the disappointing U.S. July jobs report

05.08.2024

Last weekend, the U.S. dollar became the weakest currency immediately following the release of the U.S. July employment report on Friday, the 2nd, as nonfarm payrolls came in at 114,000—well below the market forecast of 175,000—and the unemployment rate worsened by 0.2 percentage points from 4.1% to 4.3%. The USD/JPY pair fell from 149.750 to 146.432.On the daily chart, this marked the fourth consecutive day of decline.

In the European currency markets, the pound fell against the yen following the Bank of England’s policy rate announcement. The GBP/JPY pair dropped from 190.519 to 187.398. The hourly RSI fell to 25. On the 4-hour chart, the pair is declining after encountering resistance at the 10-MA. On the daily chart, the price has closed below the 200-SMA and the RSI has dropped to 14, so we will be watching closely to see if a corrective rebound develops.

Today’s schedule includes the China Caixin PMI at 10:45, Indonesia’s real GDP at 13:00, India’s services PMI and Singapore’s retail sales at 14:00, Turkey’s consumer price index and producer price index at 16:00, France’s non-manufacturing PMI at 16:50, Germany’s non-manufacturing PMI at 16:55,at 5:00 PM, the Eurozone Non-Manufacturing PMI; at 5:30 PM, the UK Non-Manufacturing PMI; at 6:00 PM, the Eurozone Producer Price Index; at 10:45 PM, the US PMI; and at 11:00 PM, the US ISM Non-Manufacturing Index. We will closely monitor the downside potential of the US dollar, which has become the weakest currency following the deterioration of the US July employment report.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed