Should We Focus on the Upside Potential of the U.S. Dollar, Now the World’s Strongest Currency?

Should We Focus on the Upside Potential of the U.S. Dollar, Now the World’s Strongest Currency?

02.05.2025

In the previous day’s U.S. currency trading, the U.S. dollar reached its strongest level during U.S. trading hours. The euro fell against the dollar for the third consecutive day.It fell from 1.1340 to 1.1266. On the 4-hour chart, the candlesticks have dropped to the -3σ level of the Bollinger Bands, and on the daily chart, the price has broken below the 10-day moving average (MA) that had been providing support and has fallen just below the 20-day MA. We will be watching closely to see if the U.S. dollar remains strong during today’s European trading session.

Among European currencies, the Swiss franc rose against the yen. The CHF/JPY pair rose from 172.805 to 175.577.The pair rebounded from the 200-period EMA on the hourly chart. On the 4-hour chart, a band walk along the +3σ line of the Bollinger Bands was observed, and on the daily chart, the pair is rising with momentum that is approaching its year-to-date high. We will need to keep an eye on price movements during U.S. trading hours to see if the Swiss franc can maintain its strength against the yen.

Today’s economic indicators include Japan’s employment statistics at 8:30, Japan’s monetary base and foreign and domestic securities investment at 8:50, Australia’s producer price index and retail sales at 10:30, Germany’s manufacturing PMI at 16:55,at 5:00 p.m., the Eurozone Manufacturing PMI and Eurozone Monthly Report; at 6:00 p.m., the Eurozone Consumer Price Index and Eurozone Employment Statistics; at 9:30 p.m., U.S. Employment Statistics; and at 11:00 p.m., U.S. Manufacturing New Orders and U.S. Durable Goods Orders (final figures).We will carefully monitor the upside potential of the U.S. dollar, which has become the strongest currency.