Attention Turns to the Upside Potential of the U.S. Dollar, Which Rallied on the Back of Strong U.S. PMI Data

Attention Turns to the Upside Potential of the U.S. Dollar, Which Rallied on the Back of Strong U.S. PMI Data

25.07.2025

In the U.S. currency market yesterday, the U.S. dollar rose against the yen after the July U.S. PMI (Purchasing Managers' Index) figures, released yesterday, showed both the non-manufacturing and composite indices came in higher than the previous month.The USD/JPY pair rose from 145.864 to 147.023. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price rebounded off the 200-period exponential moving average (EMA), which acted as a support level, and during today’s Asian trading session, it has already surpassed yesterday’s high.

The euro rebounded against the pound after the European Central Bank (ECB) held its policy rate steady—as expected by the market—during yesterday’s monetary policy meeting, marking the first time in eight meetings that the ECB had refrained from cutting rates.The euro/pound pair rose from 0.8661 to 0.8710, moving in line with the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is also rising from the 20-period MA, just as on the hourly chart, and on the daily chart, the uptrend continues, supported on the downside by the 10-period MA.

Today’s economic indicators include the UK GfK Consumer Confidence Survey at 8:01, Japan’s Tokyo Consumer Price Index at 8:30, Japan’s Business Service Price Index and Japan’s Foreign and Domestic Securities Investment at 8:50, Japan’s Economic Sentiment Index at 14:00, and the UK’sretail sales at 3:00 PM, the French Consumer Confidence Index at 3:45 PM, the German IFO Business Climate Index and Eurozone Money Supply at 5:00 PM, and U.S. Durable Goods Orders at 9:30 PM. We will carefully assess the upside potential of the U.S. dollar, which has risen on the back of strong U.S. PMI data.