Market participants may be wary of price movements in the U.S. dollar, which reversed course from a downward trend to rise following the release of economic data
04.06.2025
- U.S. ADP Employment Report
- U.S. ISM Non-Manufacturing Purchasing Managers' Index
In yesterday’s U.S. trading session, the U.S. dollar reversed course from the previous day to become the strongest currency during U.S. trading hours. The USD/JPY pair rose from 142.373 to 144.110. A trend has emerged along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices have extended 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 sharply from the +2σ to the -3σ levels of 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 be cautious of price movements driven by economic data releases, as the US dollar has reversed its downward trend and is now on the rise.
Author: Keisuke Sakurai
