Caution Advised Regarding 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 extended from the -2σ to the +3σ levels on the hourly Bollinger Bands. On the 4-hour chart, the price has moved from below the 20-day moving average (MA) to above it, while on the daily chart, the 20-day MA acted as a support level, leading to a rebound. We will keep a close eye on whether the US dollar continues to weaken.
Among European currencies, the pound weakened further against the already soft U.S. dollar. The GBP/USD pair fell for the fourth consecutive day.It fell from 1.3330 to 1.3258. On the hourly chart, it rebounded after encountering resistance at the 200-day SMA, while on the 4-hour chart, the downtrend along the 20-day MA continues. On the daily chart, it has broken below the 10-day MA, which had been providing support. We will be watching to see if the pound remains weak during European trading hours.
Today’s economic indicators include the Swiss Consumer Price Index at 3:30 p.m., the U.S. Non-Manufacturing PMI (revised) at 10:45 p.m., the U.S. ISM Non-Manufacturing Index at 11:00 p.m., and a U.S. 3-year Treasury auction at 2:00 a.m.With the UK market closed today and the Japanese market closed today and tomorrow, traders should be cautious of sudden shifts in volatility involving the yen.
Author: Keisuke Sakurai
