All Eyes on Whether ECB President Lagarde’s Remarks Will Change the Euro’s Direction
19.05.2023
- Remarks by U.S. Federal Reserve Board Member Bowman
- Remarks by ECB President Lagarde
The U.S. dollar rose against the yen for the sixth consecutive day yesterday, as the number of new U.S. unemployment insurance claims—released yesterday—decreased to 242,000 from 264,000 the previous week. The USD/JPY pair rose by about 1.5 yen, from 137.276 to 138.746.This marked the first time the pair had reached the 138-yen level since November 30 of last year. From a technical perspective, USD/JPY is trending toward the upper boundary of its daily rising parallel channel—the mid-140-yen range—so we should watch for further gains following a period of consolidation.
Among European currencies, the euro rose slightly against the Japanese yen, which was the weakest currency. The euro/yen pair rose by about 60 pips, from 148.759 to 149.438. While cross-yen pairs generally rose amid the yen’s weakening trend, the euro/yen’s gains were limited.From a technical perspective, the EUR/JPY has pulled back after the 4-hour RSI touched 70, so traders should be wary of a potential decline in the euro during European trading hours.
Today’s schedule includes the German Producer Price Index at 15:00 during Asian trading hours; Taiwan’s current account balance at 17:20 during European trading hours; remarks by MPC member Haskell of the UK at 18:45; Canadian retail sales at 21:30 during U.S. trading hours;at 9:45 p.m. U.S. time, remarks by Williams, President of the New York Fed; at 10:00 p.m. U.S. time, remarks by Bowman, Member of the Federal Reserve Board; at midnight U.S. time, remarks by Powell, Vice Chair of the Federal Reserve; and at 4:00 a.m. U.S. time, remarks by Lagarde, President of the ECB.I want to watch carefully to see if ECB President Lagarde’s remarks will change the direction of the euro.
Author: Keisuke Sakurai
