All eyes are on whether the falling U.S. dollar will be affected by comments from key figures

All eyes are on whether the falling U.S. dollar will be affected by comments from key figures

07.03.2025

In the U.S. currency market yesterday, the U.S. dollar weakened during U.S. trading hours after the U.S. January trade balance, released yesterday, worsened from a deficit of $98.4 billion the previous month to a deficit of $131.4 billion. The USD/JPY pair fell from 149.339 to 147.329.The pair rebounded upon touching the 75-period moving average on the hourly chart. On the 4-hour chart, the candlesticks fell to the -2σ level of the Bollinger Bands, and the daily chart showed a similar price movement to the 4-hour chart.

European currencies fell against the yen after the ECB announced a 0.25% rate cut yesterday, in line with market consensus.EUR/JPY fell from 161.232 to 159.124. 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 price is declining, retesting just below the 200-period simple moving average (SMA), and on the daily chart, it has pulled back after hitting a new high for the month.

Today’s economic indicators include German manufacturing orders and UK Halifax house prices at 4:00 PM; remarks by ECB President Lagarde and German Bundesbank President Nagel at 6:30 PM; Canadian and U.S. employment reports at 10:30 PM; remarks by Fed Governor Bowman at 12:15 AM; and remarks by Williams at 12:45 AM:NY Fed President, at 2:20 a.m. remarks by U.S. Federal Reserve Governor Kugler, at 2:30 a.m. remarks by U.S. Federal Reserve Chair Powell, and at 3:30 a.m. remarks by U.S. President Trump. We will be closely watching to see if the falling U.S. dollar reacts to these key figures’ remarks.