Will Cross-Yen Pairs, Which Have Been Selling Off, Rise Again? Caution Is Advised
27.12.2022
- Dallas Fed Manufacturing Activity Index
- U.S. S&P/Case-Shiller Home Price Index
In the U.S. currency market the previous day, the EUR/USD traded in a range-bound pattern as markets in Europe and the U.S. were closed for the Christmas holiday. The pair moved within a narrow range between 1.0586 and 1.0632, lacking clear direction just below the 200-period SMA on the hourly chart.However, during today’s Asian session, the pair has been testing the upside, albeit modestly, and has moved above the 20-period moving average on the 4-hour chart. We will be watching to see if it reaches the recent high of 1.0735 during the European session.
Among European currencies, the euro/yen fell during Asian trading hours, dropping to 140.293. However, it has since recovered during today’s Asian session and is currently trading around 141.494. With cross-yen pairs generally rising slightly today—partly due to yen selling—we will be keeping a close eye on the extent of the gains heading into U.S. trading hours.
Today, at 14:00 during Asian trading hours, Japan’s housing starts and construction orders will be released; at 16:00 during European trading hours, Norway’s retail sales will be released; at 20:00, France’s unemployment figures will be released; at 22:30 during U.S. trading hours, U.S. wholesale inventories will be released;the U.S. S&P/Case-Shiller Home Price Index and the U.S. Home Price Index at 22:30 U.S. time, the U.S. Dallas Fed Manufacturing Activity Index at 24:30, the U.S. 2-year Treasury auction at 27:00, and the South Korean Bank of Korea Manufacturing Business Outlook Index at 29:00.We will be watching closely to see if cross-yen pairs, which have been trading lower against the yen, will rebound.
Author: Keisuke Sakurai
