Market participants may be wary of price movements in the U.S. dollar, which reversed its downward trend to rise following the release of economic data

Market participants may be wary of price movements in the U.S. dollar, which reversed its downward trend to rise following the release of economic data

04.06.2025

In contrast to the previous day, the U.S. dollar strengthened significantly during U.S. trading hours. The USD/JPY pair rose from 142.373 to 144.110, forming a trend along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices have expanded from the -2σ to the +2σ levels of the Bollinger Bands, while on the daily chart, the pair is currently searching for direction just below the 20-period MA.We will be watching closely to see if the US dollar remains strong during today’s US trading hours.

Ahead of tomorrow’s ECB policy rate announcement, the euro weakened during U.S. trading hours. The EUR/GBP pair fell from 0.8450 to 0.8406. It plummeted from the +2σ to the -3σ levels on the hourly Bollinger Bands. On the 4-hour chart, the pair is facing resistance at the 200 EMA, while on the daily chart, it has been trading within the same price range for about 10 business days, just below both the long-term and short-term moving averages.

Today’s economic indicators include: Australia’s real GDP at 10:30, Germany’s non-manufacturing PMI at 16:55, the Eurozone’s services PMI at 17:00, the UK’s services PMI at 17:30, the U.S. MBA Mortgage Applications Index at 20:00, the U.S. ADP Employment Report at 21:15, and Canada’s labor productivity at 21:30.22:45: US PMI Purchasing Managers' Index, Canada: BOC Policy Rate and Statement Release; 23:00: US ISM Non-Manufacturing Index; 23:30: US Weekly Crude Oil Inventories, Canada: BOC Governor Macklem Press Conference; 27:00: US Federal Reserve Beige Book.We should remain cautious of price movements driven by economic data releases, as the US dollar has reversed its downward trend and is now on the rise.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed