All eyes are on whether the dollar-yen rally will continue ahead of the U.S. ADP report

All eyes are on whether the dollar-yen rally will continue ahead of the U.S. ADP report

06.05.2026 New

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, slightly missing the market forecast of 53.7. However, the index remained above the 50-point threshold that separates expansion from contraction, indicating that the U.S. service 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 potential currency intervention by Japanese authorities. Currently, the 158.00 level is likely to act as resistance, while the focus will be on whether the 157.00 to 156.50 range will hold as support.We will be watching to see if the US dollar’s rally continues following today’s US ADP employment report.

European currencies saw the pound hold steady against the dollar, supported by expectations of a rate hike by the Bank of England, despite concerns over political risks ahead of the UK local elections and the situation in the Middle East. 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 key level, while the focus on the downside will be on whether the pair can hold above the 1.3510 to 1.3500 range. Revised UK and Eurozone services PMI data are scheduled for release today, and we will be watching to see how European currencies react to the economic sentiment indicators.

Today’s economic indicators include France’s March industrial production at 3:45 p.m., France’s April services PMI (revised) at 4:50 p.m., Germany’s April services PMI (revised) at 4:55 p.m., the Eurozone’s April services PMI (revised) at 5:00 p.m.,the UK April Services PMI (revised) at 17:30, the Eurozone March Producer Price Index (PPI) at 18:00, the US April ADP Employment Report at 21:15, and the Canada April Ivey Business Index at 23:00.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 US ADP Employment Report will be the main focus; we should carefully monitor the reactions of the pound, euro, and US dollar.