With the Michigan Index report due out, focus is on the dollar-yen pair trading near its highs
22.05.2026
- Revised GDP for Germany for the January–March quarter
- Final Reading of the University of Michigan Consumer Sentiment Index for May in the U.S.
In the previous day’s U.S. currency trading, the dollar traded near its highs as the preliminary U.S. May manufacturing PMI came in at 55.3—a four-year high—highlighting the resilience of the U.S. economy and inflationary pressures. The dollar/yen pair fluctuated within a range of 158.82 to 159.35 before closing near 159.00, making the ability to hold above the 159-yen level the immediate focus.On the upside, the 159.30 to 159.50 range is likely to be watched, while on the downside, the 158.80 to 158.50 range is likely to be in focus. Today, the final reading of the University of Michigan Consumer Sentiment Index is scheduled for release, and we will be looking to gauge whether the dollar’s strength will continue.
European currencies saw the euro struggle to gain ground against the dollar amid concerns over an economic slowdown in the eurozone, following the release of the preliminary May composite PMI for the eurozone, which fell to 47.5. The euro/dollar pair fluctuated within a range of 1.1576 to 1.1635 before closing near 1.1618.The immediate focus is on whether the pair can recover to the 1.1650 level, while on the downside, the 1.1580 to 1.1550 range is likely to be closely watched. Today’s schedule includes the revised German GDP figures, the German IFO Business Climate Index, and remarks by ECB President Lagarde; we will be watching the euro’s reaction to these developments regarding the European economy and monetary policy.
Today’s economic indicators include Germany’s Q1 GDP (revised) at 3:00 PM, the UK’s April retail sales, Germany’s June GfK consumer confidence survey,the French May Business Climate Index at 15:45, the German May IFO Business Climate Index at 17:00, remarks by ECB President Lagarde at 17:30, Canadian March Retail Sales and Canadian April Industrial Product Prices at 21:30, and the final reading of the U.S. May University of Michigan Consumer Sentiment Index at 23:00.In particular, during European trading hours, German GDP and the IFO Index are likely to be key drivers, while during New York trading hours, Canadian retail sales and the U.S. University of Michigan Index will likely be key drivers; we will carefully monitor the reactions of the euro, Canadian dollar, and U.S. dollar.
Author: Keisuke Sakurai
