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Market participants may be on guard against price movements in the U.S. dollar, which reversed course from a downward trend to rise following the release of economic data

Market Report

Market participants may be on guard against price movements in the U.S. dollar, which reversed course from a downward trend to rise following the release of economic data

Today's Highlights
  1. U.S. ADP Employment Figures
  2. U.S. ISM Non-Manufacturing Economic Index

In U.S. currency trading yesterday, the U.S. dollar reversed course from the previous day and reached its strongest level 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, the price has extended from the -2σ to the +2σ levels of the Bollinger Bands, while on the daily chart, it is currently searching for direction just below the 20-period moving average. We will be watching closely to see if the U.S. dollar maintains its strength during today’s U.S. trading hours.

Ahead of tomorrow’s ECB policy rate announcement, the euro weakened during U.S. trading hours. The euro/pound 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 17:30,8:00 PM: U.S. MBA Mortgage Applications Index; 9:15 PM: U.S. ADP Employment Report; 9:30 PM: Canada Labor Productivity; 10:45 PM: U.S. PMI Purchasing Managers’ Index; Canada BOC Policy Rate and Policy Statement;U.S. ISM Non-Manufacturing Index at 23:00, U.S. Weekly Crude Oil Inventories at 23:30, BOC Governor McClem’s press conference, and the U.S. Federal Reserve Beige Book at 27:00.We should remain cautious of price movements driven by economic data releases, as the U.S. dollar has reversed its downward trend and is now on the rise.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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