Should we keep a close eye on the direction of the rising euro-yen exchange rate?
12.04.2022
- Remarks by Brainard, the incoming Vice Chair of the Federal Reserve
- Germany/Europe: ZEW Economic Sentiment Survey
In the previous session, the U.S. dollar traded in a tight range against the euro, with the EUR/USD pair fluctuating between 1.087 and 1.093. Similarly, the GBP/USD pair traded in a range between 1.298 and 1.305, showing no clear direction. Notably, the daily RSI for GBP/USD stands at 33, so we will be closely monitoring whether it forms a double bottom on the daily chart.
European currencies weakened again as reports emerged that approximately 10,000 civilians had been killed in Mariupol, in southeastern Ukraine, fueling concerns that the war—with no end in sight—is intensifying. Among the yen crosses, the euro/yen pair is facing particularly heavy resistance on the upside and is currently attempting to rise, hovering around 136.49.
Today, the UK unemployment rate and German CPI will be released at 3:00 PM, Turkish industrial production at 4:00 PM, the German/Eurozone ZEW Economic Sentiment Survey at 6:00 PM,the US NFIB Small Business Optimism Index at 7:00 PM, the US Consumer Price Index at 9:30 PM, remarks by incoming Fed Vice Chair Brainard at 1:10 AM, the US 10-year Treasury auction at 2:00 AM, the US budget balance at 3:00 AM, and remarks by Richmond Fed President Barkin at 7:45 AM the following day.We will keep a close eye on the direction of cross-yen pairs while paying attention to economic data releases starting during European trading hours.
Author: Keisuke Sakurai
