Will attention focus on the resilience of the U.S. dollar, now the weakest currency?

Will attention focus on the resilience of the U.S. dollar, now the weakest currency?

19.08.2024

Last weekend, the U.S. dollar became the weakest currency during U.S. trading hours after the U.S. July housing starts data, released on the 16th, showed a sharp deterioration from the previous month’s 3.4% to a decline of 4.0%. The EUR/USD pair rose from 1.0967 to 1.1034, forming a trend along the 20-period moving average on the hourly chart. On the 4-hour chart, the pair has surged to the +2σ level of the Bollinger Bands.

Despite the fact that the seasonally adjusted EU trade balance for June, released on the 16th, came in at €17.5 billion—exceeding market expectations of €13.5 billion and up from €12.3 billion the previous month—the euro fell against the yen.The EUR/JPY pair fell from 163.853 to 162.277, temporarily breaking below the support level indicated by the 75-period moving average (MA) on the hourly chart. Since it has broken below the 20-period MA on the 4-hour chart, traders should watch for a continued decline during European trading hours.

Today’s economic indicators include UK Rightmove house prices at 8:01, Japan’s machinery orders at 8:50, Thailand’s real GDP at 11:30, Malaysia’s trade balance at 13:00,22:15: Remarks by Fed Governor Waller (U.S.), 23:00: Leading Economic Index (U.S.), 6:00 the following day: Consumer Confidence Index (South Korea), and 7:45: Trade Balance (New Zealand). We will carefully assess the resilience of the U.S. dollar, which has become the weakest currency.

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