Will the market wait and see which direction the euro takes as it weakens against the yen?
22.12.2022
- Kansas City Fed Manufacturing Activity Index
- U.S. Core PCE Deflator
The previous day, the U.S. dollar was in a stalemate against the euro.The EUR/USD pair traded in a range between 1.0590 and 1.0645, continuing its directionless movement as it hovered around the 20-period moving average (MA) on the hourly chart. Technically, the 75-period MA on the 4-hour chart is acting as support for the EUR/USD, and the pair is gradually forming higher lows. On the daily chart, the upward trend supported by the 10-period MA continues, so we will be watching closely to see if an upward trend emerges during European trading hours.
European currencies saw the German GfK Consumer Confidence Index for January, released yesterday, come in at -37.8, marking a third consecutive monthly increase; however, the euro continued to face resistance against the yen.The EUR/JPY pair traded within a range of approximately 110 pips between 139.639 and 140.774, but failed to break above the 23.6% Fibonacci retracement level and remains stagnant during today’s Asian session. However, as the price has been slightly raising its lows on the hourly chart, it will be worth watching whether the pair gains more upward momentum during the European session.
Today, at 16:00 CET, the UK will release its Q3 GDP and Q3 current account balance; at 20:00, Turkey will announce its policy rate and statement; and at 22:30 EST, the U.S. will release initial jobless claims, Q3 GDP, and personal consumption expenditures.US Core PCE Deflator, at 12:00 AM US time, the US Leading Economic Index, at 12:30 AM US time, US Weekly Natural Gas Inventories, and at 1:00 AM US time, the US Kansas City Fed Manufacturing Activity Index. I intend to carefully monitor the direction of the euro, which has been weakening against the yen.
Author: Keisuke Sakurai
