Concerns over the upside potential of the U.S. dollar, which has emerged as the dominant force in the U.S. presidential election

Concerns over the upside potential of the U.S. dollar, which has emerged as the dominant force in the U.S. presidential election

06.11.2024

Yesterday, the U.S. dollar was the weakest currency in U.S. trading hours. The EUR/USD pair rose from 1.0871 to 1.0935, with prices moving along the +2σ line of the hourly Bollinger Bands. However, during today’s Asian trading hours, the U.S. dollar has strengthened on the back of preliminary results from the U.S. presidential election, causing the EUR/USD pair to plummet to 1.0702.

European currencies saw the Swiss franc strengthen against the yen following yesterday’s release of Switzerland’s October employment statistics, which showed that the seasonally adjusted unemployment rate remained unchanged from the previous month at 2.6%. The CHF/JPY pair rose from 169.340 to 177.250. A rebound occurred from below the 20-period moving average (MA) on the hourly chart. Since a rebound has occurred upon touching the 20-period MA on the daily chart, we should keep an eye on whether the Swiss franc’s upward trend continues.

Today, the BOJ meeting minutes will be released at 8:50 a.m., followed by German manufacturing orders at 4:00 p.m., the French non-manufacturing PMI at 5:50 p.m., the German non-manufacturing PMI at 5:55 p.m., the Eurozone non-manufacturing PMI at 6:00 p.m., and the UKConstruction PMI, at 7:00 PM the Eurozone Producer Price Index, at 9:00 PM the U.S. MBA Mortgage Applications Index, at 11:00 PM remarks by ECB President Lagarde, at 12:00 AM the Canadian Ivey PMI, at 12:30 AM U.S. weekly crude oil inventories, and at 3:00 AM a U.S. 30-year Treasury auction.We must remain highly vigilant regarding the upside potential of the US dollar, which has emerged as the dominant force in the US presidential election.