Will the pause in the yen's depreciation continue?

Will the pause in the yen's depreciation continue?

22.10.2021

Yesterday, in the U.S. market, two of the three major stock indices rose, resulting in a market environment characterized by higher stock prices, higher interest rates, and lower crude oil prices. The number of new U.S. unemployment insurance claims released yesterday came in at 2.48 million, compared to the market forecast of 2.55 million, marking the third consecutive week of decline in claims.WTI crude oil fell to $82.2. Crude oil futures prices declined after the U.S. National Oceanic and Atmospheric Administration (NOAA) forecast a mild winter for the United States.

In the foreign exchange market, the euro is broadly weaker, with the EUR/AUD pair hitting a new low for the month. It is currently trading around 1.555. The EUR/AUD pair has already broken below the trendline support at 1.565, and if the decline continues, the next immediate low of 1.529 will likely serve as the next target.

Today’s economic indicators include UK retail sales at 15:00, French manufacturing and services PMIs at 16:15, German manufacturing and services PMIs at 16:30, Eurozone manufacturing and services PMIs at 17:00, and UKManufacturing/Services PMI at 17:30, Canadian Retail Sales at 21:30, U.S. Manufacturing/Services PMI at 22:45, remarks by U.S. Federal Reserve Vice Chair Quarles at 23:00, U.S. Daily:Remarks by the President of the San Francisco Fed, and at 24:00, remarks by U.S. Federal Reserve Chair Powell are scheduled. With the yen’s depreciation having paused, I want to carefully assess how the foreign exchange market will unfold over the weekend.