Market Participants May Be Watching for Further Downside Potential in the Weakening U.S. Dollar
03.04.2025
- U.S. PMI (Purchasing Managers' Index)
- Canada · International Trade in Goods
In yesterday’s U.S. currency trading, the U.S. dollar fell against the euro. The EUR/USD pair rose from 1.0781 to 1.0923. The hourly RSI surged to 77.On the 4-hour chart, a band walk along the +3σ Bollinger Band was observed, and on the daily chart, the pair is rising with momentum that is approaching last month’s high. Furthermore, as the U.S. dollar remains weak during today’s Asian trading session, we will be watching for further gains in the EUR/USD pair.
Among European currencies, the euro rose against the yen. The euro/yen pair rose from 161.104 to 164.156.It broke through the +3σ level of the hourly Bollinger Bands. On the 4-hour chart, the pair has rebounded off the 200 EMA as support, and on the daily chart, it has broken above the 200 SMA resistance line. We will need to monitor price action during U.S. trading hours to see if the euro’s upward trend will continue.
Today’s economic indicators include Japan’s foreign and domestic securities investment at 8:50, Australia’s trade balance at 9:30, Germany’s non-manufacturing PMI at 16:55, the Eurozone’s services PMI at 17:00,5:30 PM UK Services PMI, 6:00 PM Eurozone Producer Price Index, 8:30 PM US Challenger Layoffs, Eurozone ECB Meeting Minutes, 9:30 PM US Initial Jobless Claims, US Trade Balance,Canada’s International Merchandise Trade, at 10:45 p.m. the U.S. PMI Purchasing Managers’ Index, at 11:00 p.m. the U.S. ISM Non-Manufacturing Index, and at 1:30 a.m. remarks by U.S. Federal Reserve Vice Chair Jefferson are scheduled. We will be closely monitoring the downside potential of the weakening U.S. dollar.
Author: Keisuke Sakurai
