With the U.S. ISM report on the horizon, all eyes are on the direction of the USD/JPY pair in the 159-yen range

With the U.S. ISM report on the horizon, all eyes are on the direction of the USD/JPY pair in the 159-yen range

01.06.2026 New

Last weekend, demand for the U.S. dollar as a safe-haven asset eased slightly amid expectations of an extension to the ceasefire between the U.S. and Iran. However, concerns remained over persistently high inflation and the outlook for U.S. interest rates, and the dollar/yen pair fluctuated within a range of 159.10 to 159.39 before closing around 159.27.At the start of the week, uncertainty over the situation in the Middle East has resurfaced, and the market is currently searching for direction in the mid-159 yen range. On the upside, the 159.50 to 160.00 area is likely to act as resistance, while on the downside, the focus will be on whether the pair can hold the 159.00 to 158.80 range. We will be watching today’s U.S. ISM Manufacturing PMI to gauge whether the U.S. dollar’s resilience will continue.

European currencies rose against the U.S. dollar as the dollar weakened slightly. The euro/dollar pair traded within a range of 1.1624 to 1.1687 before closing around 1.1660, remaining in the upper 1.1600s.On the upside, the 1.1680 to 1.1700 range is likely to be watched, while on the downside, the 1.1640 to 1.1620 range is likely to be in focus. Today, revised May manufacturing PMI figures for France, Germany, the Eurozone, and the UK are scheduled for release, which should provide further confirmation of the resilience of the European economy. We will be watching to see if the euro tests the 1.1700 level following the PMI results.

Today’s economic indicators include: Switzerland’s April real retail sales at 3:30 p.m., Switzerland’s Q1 GDP and Turkey’s Q1 GDP at 4:00 p.m., Switzerland’s May manufacturing PMI at 4:30 p.m., France’s May manufacturing PMI (revised) at 4:50 p.m., Germany’s May manufacturing PMI (revised) at 4:55 p.m.,17:00 Eurozone May Manufacturing PMI (revised), 17:30 UK May Manufacturing PMI (revised), 18:00 Eurozone April Unemployment Rate, 22:45 US May Manufacturing PMI (revised), and 23:00 US May ISM Manufacturing PMI and April Construction Spending.The US ISM Manufacturing PMI is expected to come in at 53.1, which is likely to confirm the expansionary trend in the US manufacturing sector. During European trading hours, we will closely monitor the reactions of the US dollar, euro, and pound to national PMIs, and during New York trading hours, we will focus on the US ISM PMI.