Market participants may be on the lookout for price fluctuations caused by economic data releases during European and U.S. trading hours
24.03.2023
- Rice and Durable Goods Orders
- UK Retail Sales
The U.S. dollar rose against the euro yesterday after the U.S. fourth-quarter current account deficit, released yesterday, narrowed from the previous reading.The EUR/USD fell from 1.0929 to 1.0823. It reversed lower after breaking above the 1.08 level, which had been acting as resistance. Technically, the daily RSI for EUR/USD is showing a bullish reversal toward 70, and on the lower timeframe (4-hour chart), the RSI has exceeded 70 and touched 80.7; therefore, we should be cautious of a pullback on the 4-hour chart.
European currencies fell against the yen after the March Eurozone Consumer Confidence Index, released yesterday, came in at -19.2—worse than the market forecast of -18.1. The euro/yen pair dropped from 143.187 to 141.172.During today’s Asian trading session, the yen is strengthening, with the pair aiming for further lows. From a technical perspective, EUR/JPY is positioned between the daily 200-day EMA and SMA, and the daily RSI is trending downward around 44. Therefore, we should remain cautious as to whether the euro will continue to weaken against the yen through the weekend.
Today’s schedule includes UK retail sales at 4:00 PM, French manufacturing and services PMIs at 5:15 PM, German manufacturing and services PMIs at 5:30 PM, Eurozone manufacturing and services PMIs at 6:00 PM, remarks by German Bundesbank President Nagel at 6:15 PM, and UKmanufacturing/services PMI, at 9:30 PM Canadian retail sales and U.S. durable goods orders, at 10:30 PM remarks by U.S. St. Louis Fed President Bullard, at 10:45 PM U.S. manufacturing/services PMI, and at 1:00 AM remarks by a member of the Bank of England’s Monetary Policy Committee (MPC). We must remain highly vigilant for price fluctuations caused by the release of these indicators during European and U.S. trading hours.
Author: Keisuke Sakurai
