Will cross-yen pairs, which have been seeing yen selling, rise again? Caution is advised.
27.12.2022
- Dallas Fed Manufacturing Activity Index
- U.S. S&P/Case-Shiller Home Price Index
In the previous day's U.S. currency trading, the EUR/USD pair traded in a range-bound market as markets in Europe and the U.S. were closed for the Christmas holiday.The EUR/USD pair traded in a narrow range between 1.0586 and 1.0632, lacking direction just below the 200-period simple moving average (SMA) on the hourly chart. However, during today’s Asian session, it has tested the upside, albeit modestly, and has moved above the 20-period moving average (MA) on the 4-hour chart. Therefore, we will be watching to see if it reaches the recent high of 1.0735 during the European session.
European currencies saw the euro/yen pair fall 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 Asia time, Japan’s housing starts and construction orders will be released; at 16:00 Europe time, Norway’s retail sales will be released; at 20:00, France’sunemployment figures, at 22:30 during U.S. trading hours: U.S. wholesale inventories, the S&P/Case-Shiller Home Price Index, and the U.S. Home Price Index; at 24:30: the Dallas Fed Manufacturing Activity Index; at 27:00: the U.S. 2-year Treasury auction; and at 29:00: the Bank of Korea Manufacturing Business Outlook Index.We will closely monitor whether cross-yen pairs, which have been selling off, will rise again.
Author: Keisuke Sakurai
