Market Participants 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
- U.S. – Brade: Remarks by the President of the St. Louis Federal Reserve Bank
- Remarks by Nagel, President of the German Central Bank
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.From a technical perspective, the EUR/USD pair rebounded after finding support at the 200-period 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 has been declining with lower highs on the hourly chart, it will be worth watching to see if the euro continues to be sold off.
Among European currencies, the euro plummeted just before the close, causing the euro/yen pair to drop 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, since there is no support until around 142.561—the lower boundary of the 4-hour descending channel—traders should be wary of a decline to that level.
Today’s schedule includes Norwegian retail sales at 16:00, Hong Kong’s trade balance at 17:30, the Eurozone money supply at 18:00, the UK’s CBI retail sales at 20:00, Mexico’s trade balance at 21:00, Canada’s current account balance at 22:30,at 24:30, the U.S. Dallas Fed Manufacturing Index; at 25:30, the U.S. 6-month bill auction; at 26:00, remarks by U.S. NY Fed President Williams and U.S. Fed Governor Brade:St. Louis Fed President, and at 26:00, remarks by German Bundesbank President Nagel. We want to carefully assess currency strength and weakness at the start of the week, which began with buying of the U.S. dollar and the yen.
Author: Keisuke Sakurai
