Should we be watching for upside potential in the euro, now that it has become the strongest currency?
16.09.2022
- Remarks by ECB President Lagarde
- European Consumer Price Index
In yesterday’s U.S. trading session, the Canadian dollar weakened against the yen. The CAD/JPY pair fell by just under 100 pips, from 109.164 to 108.376. During today’s Asian session, the pair has continued to test lower levels, already dropping to 107.917. Since the CAD/JPY has entered a “vacuum zone” with no support on the 4-hour chart, traders should be on guard for a significant decline during U.S. trading hours.
Among European currencies, the euro rose against the pound, with the EUR/GBP pair climbing from 0.8642 to 0.8720. It also hit a new high for the year during today’s Asian trading session, touching 0.8728. On the 4-hour chart, the 75-period moving average is providing support, and with the daily RSI hovering just below 70, there is room for further gains following a brief pullback.
Today’s schedule includes UK retail sales at 3:00 PM Asia time, remarks by ECB President Lagarde at 5:30 PM Europe time, the Eurozone Consumer Price Index at 6:00 PM,, at 20:30 the Turkish Housing Price Index, at 21:15 Canadian Housing Starts, at 21:30 during U.S. trading hours Canadian Wholesale Sales and Canadian International Securities Turnover, at 23:00 the U.S. University of Michigan Consumer Sentiment Index (Preliminary), and at 29:00 U.S. Foreign Investment in U.S. Securities. We will be watching for upside potential in the euro, which has become the strongest currency.
Author: Keisuke Sakurai
