With the Michigan Index release approaching, attention is focused on the USD/JPY pair trading near its highs
22.05.2026
- Revised GDP Figures for Germany for January–March
- U.S. University of Michigan Consumer Sentiment Index for May: Final Reading
In the U.S. currency market the previous day, the U.S. dollar traded near its highs as the preliminary U.S. May manufacturing PMI came in at 55.3—a four-year high—amid growing awareness of the resilience of the U.S. economy and inflationary pressures.The USD/JPY pair fluctuated within a range of 158.82 to 159.35 before closing near 159.00; the immediate focus is on whether it can maintain the 159-yen level.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 watching to see if the U.S. dollar’s strength continues.
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 it can recover to around 1.1650, 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 to see how the euro reacts to these developments regarding the European economy and monetary policy.
Today’s economic indicators include Germany’s Q1 GDP (revised) at 15:00,UK April retail sales, the German GfK Consumer Confidence Survey for June, the French Business Climate Index for May at 15:45, the German IFO Business Climate Index for May at 17:00,a 5:30 p.m. speech by ECB President Lagarde, 9:30 p.m. Canadian March retail sales and April industrial product prices, and 11:00 p.m. final U.S. May University of Michigan Consumer Sentiment Index.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 are likely to be key drivers; we will carefully monitor the reactions of the euro, Canadian dollar, and U.S. dollar.
Author: Keisuke Sakurai
