All eyes are on whether the euro and the U.S. dollar will break out of their current range
20.12.2022
- U.S. Housing Starts
- Total Retail Sales
In yesterday's U.S. currency trading, the Canadian dollar strengthened, with the CAD/JPY pair rising from 99.214 to 100.456.In early Asian trading today, the pair tested the upside and rose as high as 100.750, but then fell back following today’s Bank of Japan monetary policy meeting. It dropped by approximately 3.5 yen to 97.301. Technically, the CAD/JPY pair has fallen to the monthly 20-day moving average (MA), and since the Bollinger Bands have not yet reached the -3σ level, there is still room for further movement; therefore, caution is advised regarding a potential decline following a period of consolidation.
Among European currencies, the euro traded sideways against the U.S. dollar. The EUR/USD pair has been trading in a range between 1.0576 and 1.0657, with both the lower and upper bounds of the range narrowing slightly. On the 4-hour chart, the EUR/USD pair is seeking direction with the 20-day moving average serving as the central line; therefore, we expect the current range to persist until the release of the University of Michigan Consumer Sentiment Index later this week.
Today, at 4:00 PM: South Africa’s Leading Index, Germany’s Producer Price Index, and Switzerland’s Trade Balance;Turkey’s Consumer Confidence Index at 4:00 PM; Hong Kong’s Consumer Price Index at 5:30 PM; the Philippines’ Industrial Production and Producer Price Index, as well as the Eurozone’s Current Account Balance at 6:00 PM; Mexico’s Retail Sales at 9:00 PM; and Canada’s Retail Sales, U.S. Housing Starts, and Building Permits at 10:30 PM.We will be watching closely to see if the euro and the U.S. dollar break out of their current range.
Author: Keisuke Sakurai
