With the U.S. dollar strengthening on the back of strong U.S. economic indicators, attention is turning to its upside potential

With the U.S. dollar strengthening on the back of strong U.S. economic indicators, attention is turning to its upside potential

16.08.2024

In the U.S. currency market yesterday, the U.S. dollar rose immediately after the release of July retail sales data, which showed a rise from 0.0% in the previous month to 1.0%. The USD/JPY pair climbed from 147.048 to 149.393. The 75-period moving average (MA) on the hourly chart acted as a support level, leading to a strong, sharp rally.On the 4-hour chart, the price has broken above the 75-period moving average (MA) after trading just below the 20-period MA, and on the daily chart, the price has broken above the 10-period MA with a bullish candle.

Among European currencies, the Swiss franc weakened against the US dollar during US trading hours, following the Japanese yen. The USD/CHF pair rose from 0.8640 to 0.8748. It surged sharply as the 20-period moving average (MA) on the hourly chart acted as support.On the 4-hour chart, the pair has also begun rising from the 20-period moving average (MA), and on the daily chart, it has surged from the 10-period MA to just below the 20-period MA. We will need to monitor price movements during European trading hours to see if the Swiss franc continues to weaken against the US dollar.

Today’s economic indicators include the New Zealand Producer Price Index at 7:45, Japan’s Foreign and Domestic Securities Investment at 8:50, Malaysia’s Current Account Balance at 13:00, UK Retail Sales at 15:00, Swiss Industrial Production at 15:30, and the Eurozonetrade balance at 13:00, Canada’s housing starts at 21:15, U.S. housing starts at 21:30, the University of Michigan Consumer Sentiment Index at 23:00, and remarks by Chicago Fed President Goolsbee at 26:25. We will closely monitor the upside potential of the U.S. dollar, which has strengthened on the back of strong U.S. economic data for July.

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