Will the trend of the Japanese yen being bought back continue into the start of the week?
04.07.2022
- U.S. markets are closed for a holiday
- Remarks by Nagel, President of the German Central 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. Technically speaking, 1.1930 is the most recent low, and a break below this level would signal a return to a "no-man's land" scenario. For now, we will wait and see cautiously to see if the pair can find solid support at 1.1930.
European currencies saw the euro drop 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, concerns about a recession driven by expectations of interest rate hikes intensified as the European consumer price index, released on the same day, rose to 8.6%. Since the EUR/USD pair has reached the monthly support level around 1.0340, we will closely monitor the situation to see if a significant rebound occurs.
Today, the German trade balance is scheduled for 3:00 PM Asia time, followed by the Swiss Consumer Price Index at 3:30 PM. During European trading hours, the Turkish Consumer Price Index and Producer Price Index are set for 4:00 PM, with the Eurozone Producer Price Index at 6:00 PM. Finally, at 11:00 PM U.S. time, German Bundesbank President Nagel is scheduled to speak.We need to closely monitor whether the trend of the Japanese yen being bought back will continue into the start of the week.
Author: Keisuke Sakurai
