Should we wait and see if the U.S. dollar can sustain its rally following strong U.S. employment data?

Should we wait and see if the U.S. dollar can sustain its rally following strong U.S. employment data?

07.10.2024

Last weekend, the U.S. dollar emerged as the strongest currency immediately following the release of the U.S. September employment report on Friday, the 4th. The report showed that the unemployment rate improved by 0.1 percentage points from the previous month’s 4.2% to 4.1%, while nonfarm payrolls rose sharply from 142,000 in the previous month to 254,000.The USD/JPY pair surged by approximately 3 yen, rising from 145.919 to 148.987. On the weekly chart, a bullish engulfing candle has formed, completely enveloping the previous week’s candlestick.

European currencies saw the pound fall against the U.S. dollar despite the UK’s September Construction PMI, released on the 4th, rising to 57.2 from 53.6 the previous month. The GBP/USD pair fell from 1.3174 to 1.3069.On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the 200-period simple moving average (SMA) is acting as resistance, and on the daily chart, the price is approaching last month’s low.

Today’s schedule includes Japan’s foreign exchange reserves at 8:50, New Zealand’s total reserve assets at 11:00, Thailand’s consumer price index at 12:30, Japan’s economic sentiment index at 14:00, Germany’s new manufacturing orders and industrial production, and Norway’s manufacturing production at 15:00, Hungary’s trade balance at 15:30,at 4:00 PM, Switzerland’s foreign exchange reserves; at 6:00 PM, Eurozone retail sales; at 11:30 PM, remarks by Germany’s Bundesbank President Nagel; at 12:30 AM, the U.S. 6-month Treasury bill auction; and at 2:50 AM, remarks by U.S. Federal Reserve Bank of Minneapolis President Kashkari.We intend to cautiously monitor the upside potential of the U.S. dollar, which surged on the back of strong U.S. employment data.

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