Will the market wait and see how the euro moves while European markets are closed?
01.05.2023
- U.S. Construction Spending
- U.S. Manufacturing PMI
Last weekend, the U.S. dollar strengthened against the yen, with the USD/JPY pair rising from 133.363 to 136.757. The pair followed an uptrend along the 10-period moving average on the hourly chart. On the April monthly chart, which closed last weekend, the USD/JPY formed a bullish candle with a lower wick, indicating a higher low.Ahead of this week’s FOMC meeting, we will be closely monitoring the direction of the USD to see if it continues to rise against the yen.
European currencies saw the euro fluctuate against the U.S. dollar after Germany’s April consumer price index, released last weekend on April 28, came in at 7.2% year-over-year, down from 7.4% the previous month.The EUR/USD pair traded within a range between a low of 1.0962 and a high of 1.1044, searching for direction, with sharp fluctuations observed around the 200-period simple moving average (SMA) on the hourly chart.On the daily chart, while the EUR/USD is finding support at the 20-day moving average, the daily RSI is showing divergence just shy of 70. We will be closely monitoring the EUR/USD’s price action at the start of the month.
Today, at 14:00, India’s Manufacturing PMI and Japan’s Consumer Price Index will be released; at 22:45, the U.S. Manufacturing PMI; at 23:00, U.S. Construction Spending and the U.S. ISM Manufacturing Index; at 24:30, the U.S. 6-month Treasury bill auction; andand at 27:00, Brazil’s trade balance. With European markets closed, I’d like to carefully monitor whether the euro will see active price movements.
Author: Keisuke Sakurai
