Keep an eye on the release of the U.S. Consumer Confidence Index

Keep an eye on the release of the U.S. Consumer Confidence Index

22.02.2022

In the previous day’s U.S. currency trading, the USD/JPY pair fell amid risk-off-driven yen buying, even as the Dollar Index rose slightly to 96.2. The pair broke below the key level of 115.00 from 115.12, dropping approximately 60 pips to 114.50.As USD/JPY appears to be forming a triple top on the daily chart, we will monitor the situation closely to see if it will fall to the support level at 113.44.

European currencies are under pressure as geopolitical risks have intensified following Russian President Putin’s statement that he would “recognize the independence of two regions in eastern Ukraine,” causing the euro to plummet. The euro/yen pair fell by approximately 150 pips from 130.89 to 129.36, marking its fourth consecutive day of decline. If the downtrend continues, there will be no significant support until 128.23, so traders should be wary of further declines.

Today, the Turkish Economic Sentiment Index and Capacity Utilization Rate are scheduled for release at 4:00 PM, followed by the German IFO Business Climate Index at 6:00 PM, remarks by Ramsden, Deputy Governor of the Bank of England, at 7:45 PM, and the UK CBI Business Survey at 8:00 PM. Once U.S. trading hours begin, the U.S. S&P/Case-Shiller Home Price Index is scheduled for 11:00 PM,at 11:45 PM, the US Manufacturing/Services PMI (flash estimates); at 12:00 AM, the US Richmond Fed Manufacturing Index and the US Consumer Confidence Index; at 3:00 AM, the US 2-year Treasury auction; and at 3:30 AM, remarks by Bostic, President of the Atlanta Fed. I plan to monitor price movements closely while keeping an eye on the release of the US Consumer Confidence Index during US trading hours.