Attention may turn to the U.S. S&P/Case-Shiller Home Price Index

Attention may turn to the U.S. S&P/Case-Shiller Home Price Index

31.05.2022

Yesterday, the U.S. dollar strengthened against the yen, with the USD/JPY pair rising by approximately 90 pips from 126.85 to 127.83. During today’s Asian trading session, the pair continued to climb, briefly touching 128.33 and breaking above the descending channel. We will be watching to see if the price closes above the 20-day moving average on the daily chart.

European currencies continued to rise yesterday after ECB Executive Board member Lane specifically stated that “interest rate hikes of 0.25% at each subsequent ECB meeting would be desirable,” with the EUR/USD pair breaking through its monthly high of 1.078. Since the EUR/USD pair easily broke through the resistance at the 200-period simple moving average (SMA) on the 4-hour chart and continues to rise along the 20-period moving average (MA), we should keep an eye on further upside potential, even as the market undergoes some consolidation.

Today, at 15:45 CET, France will release its Q1 GDP and Producer Price Index; at 16:00, Turkey will release its trade balance and Q1 GDP; at 16:55, Germany will release its unemployment rate; at 17:30, the UK will release its mortgage approvals; and at 18:00, the Eurozone will release theConsumer Price Index (flash estimate), and during U.S. trading hours at 21:30, Canada’s GDP; at 22:00, the U.S. S&P/Case-Shiller Home Price Index; at 22:45, the U.S. Chicago PMI; at 23:00, the U.S. Consumer Confidence Index; and at 23:30, the U.S. Dallas Fed Manufacturing Index.While keeping an eye on the economic data releases during U.S. trading hours, we will be watching the direction of the U.S. dollar.