Market Watchers Eye U.S. Employment Data to Gauge Dollar's Rebound

Market Watchers Eye U.S. Employment Data to Gauge Dollar's Rebound

07.05.2026 New

In the previous session, the U.S. dollar traded weakly against major currencies as risk appetite strengthened on hopes of a ceasefire between the U.S. and Iran, despite the April ADP employment report showing an increase of 109,000 jobs—a stronger gain than the previous month.The dollar-yen pair plummeted from around 157.80 to near 155.00 at one point, and has since been trading in the low 156-yen range, with market participants continuing to watch for signs of potential currency intervention by Japanese authorities. Currently, the 157.00 level appears to be a key resistance level, while the focus will likely be on whether the 155.00 level holds as support on the downside.We will be watching to see if the US dollar finds a bottom following today’s US initial jobless claims data.

European currencies saw the pound hold firm against the dollar after the UK’s April services Purchasing Managers’ Index (PMI, revised) rose to 52.7 from 50.5 in March. However, cost pressures on businesses are intensifying amid rising fuel and labor costs, and caution remains regarding the Bank of England’s policy decisions.After rising to around 1.3600, the GBP/USD pair is now at a level where resistance is likely to be felt. On the upside, the 1.3600 to 1.3620 range is likely to be watched, while on the downside, the mid-1.3500s are likely to be a focus. Attention will be on whether the pound’s resilience continues following today’s UK Construction PMI release.

Today’s economic indicators include Germany’s March manufacturing new orders at 3:00 PM, France’s March trade balance and current account balance at 3:45 PM, Switzerland’s April unemployment rate at 4:00 PM, the UK’s April construction Purchasing Managers’ Index (PMI) at 5:30 PM,Eurozone March Retail Sales at 18:00, US Initial Jobless Claims for the previous week, Q1 Nonfarm Productivity, and Q1 Unit Labor Costs at 21:30, and US March Construction Spending at 23:00.In particular, during European trading hours, the UK Construction PMI and Eurozone Retail Sales are likely to be key drivers, while during New York trading hours, US employment-related indicators will likely be the main focus; we should carefully monitor the reactions of the pound, euro, and US dollar.