We need to be on the lookout to see if the trend of selling the yen will continue on the last day of the month.
31.10.2022
- Retail Sales in Germany
- Dallas Fed Manufacturing Activity Index
Last weekend, the U.S. dollar index recovered slightly to 110.8, causing the EUR/USD pair to fall by approximately 70 pips from 0.9997 to 0.9926.The EUR/USD pair has paused its upward momentum and is trending lower since the ECB meeting last weekend, with prices falling as they retest the downtrend line established in February of this year. We will closely monitor the situation to see if the decline continues down to the downtrend line level around 0.9849 before potentially reversing higher.
Among European currencies, the pound—which has been on an upward trend since Prime Minister Sunak took office—rose against the yen. GBP/JPY climbed from 168.858 to 171.337, marking a gain of approximately 2.4 yen and easily surpassing the key psychological level of 170.00.Furthermore, with cross-yen pairs generally rising during today’s Asian session, the pair hit 172.130, setting a new high for the year. We will be watching closely to see if GBP/JPY continues to rise amid yen selling during the U.S. session.
Today’s schedule includes German retail sales at 16:00 CET, Swiss retail sales at 16:30 CET, UK mortgage approvals, UK consumer credit balances, and UK mortgage lending at 18:30 CET, followed by the Eurozone consumer price index (flash estimate) and Eurozone Q3 GDP at 19:00 CET. During U.S. trading hours, South Africa’s trade balance is scheduled for 21:00,at 10:45 PM, the U.S. Chicago PMI, and at 11:30 PM, the U.S. Dallas Fed Manufacturing Activity Index. We should remain vigilant to see if the yen-selling trend continues on the last day of the month.
Author: Keisuke Sakurai
