Market Focus Shifts to Assessing the U.S. Dollar’s Movement in the Upper Range Ahead of Key PMI Releases
21.05.2026
- Preliminary May PMI Figures for the Eurozone, the UK, and the U.S.
- U.S. Initial Unemployment Insurance Claims for the Previous Week
In the previous day’s U.S. currency trading, the U.S. dollar traded near its highs after the FOMC minutes indicated that further tightening could be appropriate if inflation remains elevated.The USD/JPY pair fluctuated within a range of 158.58 to 159.18 before closing near 158.89; resistance around the 159.00 level is likely to be a key concern.On the downside, the focus will likely be on whether the area between 158.50 and 158.00 will act as support. With U.S. initial jobless claims, preliminary PMI figures, and housing-related indicators scheduled for release today, we will be watching to see if the U.S. dollar continues to trade near its recent highs.
European currencies saw the euro struggle to find direction against the dollar, as the eurozone’s April Harmonized Index of Consumer Prices (HICP, revised) came in at 3.0% year-over-year—above the ECB’s target—while the strengthening U.S. dollar weighed on the currency.The euro/dollar pair traded within a range of 1.1583 to 1.1646 before closing near 1.1625. The immediate focus is on whether the pair can break above the 1.1650 level, while on the downside, the 1.1600 to 1.1580 range is likely to be a key level to watch.With preliminary PMI figures from France, Germany, the eurozone, and the UK due out in quick succession today, we will be watching to see how European currencies react to these economic sentiment indicators.
Today’s economic indicators include the preliminary May PMI figures for France’s manufacturing and services sectors at 16:15, the preliminary May PMI figures for Germany’s manufacturing and services sectors at 16:30, the preliminary May PMI figures for the eurozone’s manufacturing and services sectors and the March current account balance at 17:00,at 17:30, the UK’s May preliminary Manufacturing and Services PMI; at 21:30, the U.S. initial jobless claims for the previous week, the Philadelphia Fed Manufacturing Index, housing starts, and building permits;22:45: U.S. May Manufacturing, Services, and Composite PMI Flash Estimates; 23:00: Eurozone May Consumer Confidence; 24:00: Remarks by Bank of England (BOE) Governor Bailey will be the main focus.In particular, during European trading hours, national PMIs tend to drive the market, while during New York trading hours, U.S. employment, housing, and PMI-related indicators are likely to be key factors; we should carefully monitor the reactions of the euro, the pound, and the U.S. dollar.
Author: Keisuke Sakurai
