Dollar Gains After BOJ Decision as Markets Await US ISM Data
Currency markets traded within narrow ranges during the European session on Thursday, with both the euro and sterling coming under light pressure, while the US dollar held a firmer tone.
That mild strength turned into a clearer dollar rally overnight, as investors digested global central bank developments.
Yen Weaker After BOJ Holds Steady
The Bank of Japan (BOJ) opted to leave policy unchanged, as widely expected — a decision that prompted further weakness in the Japanese yen. In contrast, the dollar gained ground against multiple currencies, including the yen, on the back of this divergence in monetary policy.
Lighter Day Ahead for Economic Data
The macroeconomic calendar is relatively quiet on both sides of the Atlantic today. However, there are two key US releases that traders will be watching:
- US ISM Manufacturing Index (April) – Forecasts suggest a modest deterioration, which could reignite concerns over the health of the US industrial sector.
- Weekly Initial Jobless Claims – Offering a timely look at labour market conditions ahead of tomorrow’s closely watched non-farm payrolls.
These prints will help shape expectations for the Federal Reserve’s policy outlook, especially in light of recent data showing slowing momentum in some parts of the US economy.
Why It Matters for Businesses
Even in quieter sessions, currency markets can shift quickly in response to key economic indicators or central bank policy cues. With the dollar gaining and other currencies on the back foot, now’s a smart time to review your FX exposure — particularly if you’re managing USD-denominated costs or contracts.
Qumoney’s expert FX team is here to help you stay ahead of market moves and build a currency strategy that supports your business goals.
Contact us today for tailored support and real-time insights.