Should We Pay Close Attention to Currency Strength and Weakness While the Japanese Market Is Closed?
05.05.2025
- Swiss Consumer Price Index
- U.S. 3-Year Treasury Auction
Last weekend, the U.S. dollar weakened from late Asian trading hours through late U.S. trading hours. The EUR/USD pair rose from 1.1273 to 1.1380. The price moved from the -2σ to the +3σ levels on the hourly Bollinger Bands.On the 4-hour chart, the price has shifted from below the 20-period moving average (MA) to above it, while on the daily chart, the 20-period MA acted as a support level, triggering a rebound. We will be watching closely to see if the U.S. dollar continues to weaken.
Among European currencies, the pound weakened further against the soft U.S. dollar. The GBP/USD pair fell for the fourth consecutive day, dropping from 1.3330 to 1.3258.On the hourly chart, the pair rebounded but was met with resistance at the 200-period SMA; on the 4-hour chart, the downtrend along the 20-period MA continues. On the daily chart, the pair has broken below the 10-period MA, which had previously provided support. It will be worth watching whether the pound continues to weaken during European trading hours.
Today’s economic indicators include the Swiss Consumer Price Index at 15:30, the U.S. Non-Manufacturing PMI (revised) at 22:45, the U.S. ISM Non-Manufacturing Index at 23:00, and a U.S. 3-year Treasury auction at 26:00.Since the UK market is closed today and the Japanese market is closed today and tomorrow, traders should be cautious of sudden spikes in volatility involving the yen.
Author: Keisuke Sakurai
