Market participants are likely to keep a close eye on currency strength and weakness at the start of the week, which began with buying of the U.S. dollar and the yen.

Market participants are likely to keep a close eye on currency strength and weakness at the start of the week, which began with buying of the U.S. dollar and the yen.

28.11.2022

Last weekend, the U.S. dollar showed signs of strength against the euro, with the EUR/USD pair falling from 1.0428 to 1.0350.Technically, the EUR/USD pair rebounded after finding support at the 200-period simple moving average (SMA) on the hourly chart, but during Asian trading hours at the start of the week, prices are once again testing the 200-period SMA, with dollar buying standing out. Since the EUR/USD pair is in a downtrend with lower highs on the hourly chart, it will be worth watching whether the euro continues to be sold off.

European currencies saw the euro plummet just before the close, with the euro/yen pair falling from 145.136 to 144.386.The EUR/JPY pair has continued the price action seen just before the close into today’s Asian session and is currently trading around 143.434. From a technical perspective, there is no support until the lower boundary of the 4-hour descending channel at around 142.561, so we should be wary of a decline to that level.

Today’s schedule includes Norwegian retail sales at 4:00 PM, Hong Kong’s trade balance at 5:30 PM, the Eurozone money supply at 6:00 PM, the UK’s CBI retail sales at 8:00 PM, Mexico’s trade balance at 9:00 PM, Canada’s current account balance at 10:30 PM,at 12:30 AM: US Dallas Fed Manufacturing Index, at 1:30 AM: US 6-month Treasury bill auction, at 2:00 AM: US remarks by Williams, President of the New York Fed, and remarks by Bullard, President of the St. Louis Fed, and at 2:10 AM: remarks by Nagel, President of the German Bundesbank.We want to carefully assess currency strength and weakness at the start of the week, which began with buying of the US dollar and the yen.