All eyes are on whether the U.S. dollar, which weakened toward the end of the month, will recover

All eyes are on whether the U.S. dollar, which weakened toward the end of the month, will recover

02.12.2024

Last weekend, the U.S. dollar weakened against the yen. The USD/JPY pair fell from 151.527, breaking below the key 150-yen level to reach 149.471. The hourly RSI dropped to 32.On the 4-hour chart, the downtrend along the 10-MA continued throughout last week, while on the daily chart, the price closed well below the 200-SMA support line. However, the pair has shown signs of a rebound in early Asian trading today.

Among European currencies, the pound fell against the yen. The GBP/JPY pair fell from 192.261 to 190.134.It broke above the -3σ level on the hourly Bollinger Bands. On the 4-hour chart, the pair is trending gently lower along the 20-period moving average (MA), and on the daily chart, the RSI has fallen to 33. On the other hand, on the weekly chart, the pair has not yet approached the lows seen in September of this year and is trading above the support line formed by the 75-period MA.

Today’s schedule includes Japan’s capital expenditure data at 8:50, Indonesia’s manufacturing PMI at 9:30, Australia’s housing construction permits at 9:30,10:45 China Caixin Manufacturing PMI, 16:30 Switzerland Retail Sales, 17:50 Germany Manufacturing PMI, 17:55 Germany Manufacturing PMI, 18:00 Eurozone Manufacturing PMI, 18:30 UKmanufacturing PMI, at 19:00: Eurozone employment statistics, at 23:45: U.S. PMI Purchasing Managers’ Index, at 24:00: U.S. construction spending and U.S. ISM Manufacturing Index, and at 29:00: remarks by U.S. Federal Reserve Governor Waller.We will carefully assess the direction of the U.S. dollar to see if it will recover after weakening at the end of the month.