With the U.S. dollar weakening, all eyes are on the direction of the dollar-yen exchange rate around the 160-yen level

With the U.S. dollar weakening, all eyes are on the direction of the dollar-yen exchange rate around the 160-yen level

15.06.2026 New

In the U.S. currency market on the previous trading day, the preliminary reading of the University of Michigan’s June Consumer Sentiment Index improved to 48.9 from the previous reading of 44.8, prompting market participants to take note of the recovery in consumer sentiment.On the other hand, as the week began, concerns over the Middle East situation eased amid speculation of a peace agreement between the U.S. and Iran, causing demand for the U.S. dollar as a safe-haven asset to recede. The dollar-yen pair traded in a range of 159.95 to 160.38 yen in the Tokyo market, settling in the upper 160.20 yen range as of 5:00 p.m.Currently, the pair continues to trade around the 160.00 level, with resistance likely to be found in the 160.50 to 160.70 range. On the downside, the focus is on whether the pair can hold the 160.00 level; if it breaks below this, a decline toward the 159.50 area should be watched.Today, the June New York Fed Manufacturing Index and May Industrial Production data are scheduled for release; we will be watching to see if these reports signal a change in the direction of the U.S. dollar.

Following the European Central Bank’s (ECB) rate hike last week, the euro held steady against the dollar.Supported by the weakening U.S. dollar, the euro/dollar pair traded in a range of 1.1559 to 1.1584 in the Tokyo market, settling in the upper 1.1560s as of 5:00 p.m.At the start of the week, the pair tested the 1.1600 level, and attention is likely to focus on the 1.1600–1.1630 range on the upside and the 1.1560–1.1530 range on the downside.While the ECB raised its policy rate last week, the view remains that future policy decisions will depend on data. We will be watching the euro’s reaction to today’s remarks by ECB President Lagarde and the release of April industrial production data for the eurozone.

Today's economic indicators include the German May Wholesale Price Index (WPI) at 3:00 PM,the Swiss May Producer Import Prices at 15:30, the Swiss May SECO Consumer Confidence Index at 16:00, remarks by European Central Bank (ECB) President Lagarde at 16:30, the Eurozone April Industrial Production and April Trade Balance at 18:00,21:15 Canadian May Housing Starts, 21:30 U.S. June New York Fed Manufacturing Index, 22:15 U.S. May Industrial Production and Capacity Utilization, and 23:00 U.S. June NAHB Housing Market Index.In particular, during European trading hours, the ECB President’s remarks and Eurozone industrial production are likely to be key drivers, while during New York trading hours, U.S. manufacturing-related indicators will likely be the main focus; we should carefully monitor the reactions of the U.S. dollar, the yen, and the euro.