With the Japanese market set to close, investors may be watching currency strength and weakness in U.S. trading hours
20.03.2023
- Remarks by ECB President Lagarde
- Europe: Trade Balance
Last weekend, the U.S. dollar weakened as reports spread that Credit Suisse, a major Swiss financial institution, might face bankruptcy, causing the Dollar Index to decline. The USD/JPY pair fell by approximately 2 yen, from 133.745 to 131.554.The USD/JPY pair is facing resistance at the 75-period moving average (MA) on the hourly chart, and the downtrend that began on March 8 continues. Since the pair has already broken well below the 20-period MA on the daily chart, caution is warranted regarding a continued decline.
European currencies fell against the yen as the Eurozone Consumer Price Index (CPI), released on the 17th, came in at 8.5% year-over-year, missing market expectations.The euro/yen pair fell from 142.203 to 140.168. The decline was driven by resistance at the 75-period moving average on the hourly chart. However, unlike the dollar/yen pair, the euro/yen has not broken below its previous low, so we will be watching closely to see if a rebound occurs at the FOMC meeting the day after tomorrow.
Today, at 4:00 p.m. CET, Germany’s Producer Price Index will be released, followed by Poland’s Industrial Production at 6:00 p.m. and the Eurozone’strade balance at 19:00, and Mexico’s retail sales at 21:00. During U.S. trading hours, we have ECB President Lagarde’s remarks at 23:00, the U.S. 6-month Treasury bill auction at 24:30, and New Zealand’s trade balance at 6:45 the following day. Since the Japanese market will be closed tomorrow for a holiday, we will be closely monitoring currency strength and weakness during U.S. trading hours.
Author: Keisuke Sakurai
