All Eyes on Whether the Dollar-Yen Rally Will Continue Ahead of the U.S. ADP Report
06.05.2026
- Eurozone April Services Purchasing Managers' Index (PMI, Revised)
- U.S. April ADP Employment Report
In U.S. markets the previous day, the April ISM Non-Manufacturing Purchasing Managers’ Index (PMI) fell to 53.6 from 54.0 the previous month, coming in slightly below the market forecast of 53.7. However, the index remained above 50—the threshold for expansion—indicating that the U.S. services sector continues to expand.The USD/JPY pair traded within a range of 157.08 to 157.93 before closing near 157.68, with downside limited despite lingering speculation about currency intervention by Japanese authorities.Currently, the 158.00 level is likely to be viewed as an upper resistance, while on the downside, the focus will likely be on whether the 157.00 to 156.50 range will act as support. We will be watching to see if the U.S. dollar’s rally continues following today’s U.S. ADP employment report.
Amid concerns over political risks ahead of the U.K. local elections and the situation in the Middle East, the pound held up slightly against the dollar, supported by expectations of an interest rate hike by the Bank of England.The GBP/USD pair fluctuated within a range of 1.3515 to 1.3578 before closing near 1.3539.Resistance around 1.3580 is likely to be a concern, while the focus on the downside will be on whether the pair can hold above the 1.3510 to 1.3500 range. Revised services PMI figures for the UK and the eurozone are scheduled for release today, and we will be watching to see how European currencies react to these economic indicators.
Today’s economic indicators include France’s March industrial production at 15:45, France’s April services PMI (revised) at 16:50,Germany’s April Services PMI (revised) at 16:55, the Eurozone’s April Services PMI (revised) at 17:00, the UK’s April Services PMI (revised) at 17:30,6:00 p.m. Eurozone March Producer Price Index (PPI), 9:15 p.m. U.S. April ADP Employment Report, and 11:00 p.m. Canada April Ivey Purchasing Managers’ Index will be the main focus.In particular, during European trading hours, the Eurozone and UK services PMIs are likely to be key drivers, while during New York trading hours, the U.S. ADP Employment Report will likely be a key factor; we should carefully monitor the reactions of the pound, the euro, and the U.S. dollar.
Author: Keisuke Sakurai
