Will the U.S. dollar weaken in response to the U.S. jobs report and comments from key officials, or should we wait and see?

Will the U.S. dollar weaken in response to the U.S. jobs report and comments from key officials, or should we wait and see?

06.09.2024

In yesterday's U.S. currency trading, the U.S. dollar fell against the yen despite the August ISM Non-Manufacturing Index, released yesterday, improving to 51.5 from 51.4 the previous month. The USD/JPY pair fell from 144.212 to 142.841.During today’s Asian session, the pair has extended its decline to 142.267. On the daily chart, the downtrend continues as the price touches the 20-day moving average, so we should remain highly vigilant regarding price movements following today’s U.S. employment report.

European currencies saw the pound fall against the yen after the UK’s August Construction PMI, released yesterday, declined to 53.6 from 55.3 the previous month. GBP/JPY fell from 189.776 to 188.605.During today’s Asian trading session, it extended its decline, touching 187.608. On the weekly chart, the 20-day moving average is acting as a solid resistance level, so we should watch for further declines in the pound during U.S. trading hours.

Today’s economic indicators include the Japan Household Expenditure Survey at 8:30, the Philippines Unemployment Rate at 10:00, the Japan Tankan Survey at 14:00, and Germany’s Industrial Production and Trade Balance at 15:00,at 3:45 PM, France’s Current Account; at 6:00 PM, Eurozone Real GDP; at 9:30 PM, Canada’s Employment Report; at 9:30 PM, U.S. Employment Report; at 9:45 PM, remarks by U.S. Federal Reserve Bank of New York President Williams; at 11:00 PM, Canada’s Ivey PMI; and at 12:00 AM, remarks by U.S. Federal Reserve Governor Waller.We will carefully monitor the market to see if the U.S. dollar weakens in response to the U.S. employment report and remarks by key officials.