Will the trend of the Japanese yen being bought back continue at the start of the week?
04.07.2022
- U.S. markets are closed for a holiday
- Remarks by Nagel, President of the German Federal Bank
Last weekend, the U.S. dollar saw buying pressure similar to that of the Japanese yen, and as the Dollar Index rose to 105, the GBP/USD pair fell from 1.2188 to 1.1197.From a technical perspective, 1.1930 is the most recent low, and a break below this level would signal a return to a “vacuum zone.” For now, we’ll wait and see cautiously to see if the pair rebounds firmly at 1.1930.
European currencies saw the euro fall sharply against the U.S. dollar, from 1.0485 to 1.0366.Although the European manufacturing PMI released last weekend came in at 52.1, exceeding market expectations, the European consumer price index released on the same day rose to 8.6%, leading to concerns about a recession driven by expectations of interest rate hikes.Since the EUR/USD pair has reached the monthly support level around 1.0340, we will be closely monitoring the situation to see if a significant rebound occurs.
Today, at 15:00 during Asian trading hours, Germany’strade balance at 15:00, the Swiss Consumer Price Index at 15:30, the Turkish Consumer Price Index and Producer Price Index at 16:00 during European trading hours, the Eurozone Producer Price Index at 18:00, and remarks by German Bundesbank President Nagel at 23:00 during U.S. trading hours.We’ll want to closely monitor whether the trend of the Japanese yen being bought back will continue into the start of the week.
Author: Keisuke Sakurai
