Should We Be Wary of the Continued Trend of Buying the U.S. Dollar and Selling the Yen?
15.03.2022
- U.S. Producer Price Index
- U.S. New York Fed Manufacturing Index
In the U.S. currency market yesterday, the U.S. dollar rose against the yen as the yield on the 10-year U.S. Treasury note surpassed the key 2% level to reach 2.13%.The USD/JPY pair rose to the mid-118 yen range during today’s Asian trading session. It is gaining momentum as it approaches the resistance level of 118.76. Meanwhile, the EUR/USD pair has been forming higher lows on the 4-hour chart, rebounding 90 pips from 1.090 to 1.099.
Among European currencies, the euro remained the strongest currency during today’s Asian trading session, continuing the trend from yesterday, with the EUR/AUD pair rising by approximately 360 pips from 1.495 to 1.528. Since the EUR/AUD pair is positioned just above the 20-day moving average (MA) on the daily chart, it will be interesting to see if it can firmly break above the 20-day MA with a full-bodied candle.
Today’s schedule includes the UK unemployment rate at 16:00 European time, the French Consumer Price Index at 16:45, the Eurozone ZEW Economic Sentiment Survey and Eurozone Industrial Production at 19:00, Canadian Housing Starts at 21:15, and during U.S. trading hours at 21:30, the U.S.Producer Price Index and the New York Fed Manufacturing Index, at 21:30 U.S. time; Canadian existing home sales at 22:00; remarks by ECB President Lagarde at 24:15; and U.S. securities investment data at 29:00.We should keep a close eye on the movements of the U.S. dollar while monitoring the latest developments in the situation in Ukraine.
Author: Keisuke Sakurai
