All eyes are on whether ECB President Lagarde’s remarks will shift the euro’s direction
19.05.2023
- Remarks by Federal Reserve Governor Bowman
- Remarks by ECB President Lagarde
The U.S. dollar rose against the yen for the sixth consecutive day yesterday, following the release of U.S. initial jobless claims data showing a decline from 264,000 the previous week to 242,000. The USD/JPY pair rose by approximately 1.5 yen, from 137.276 to 138.746, reaching the 138-yen level for the first time since November 30 of last year.From a technical perspective, USD/JPY is trending toward the upper limit of its daily rising parallel channel at the mid-140 yen level, so we should watch for an upward move following a period of consolidation.
Among European currencies, the euro rose slightly against the Japanese yen, which has become 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 euro/yen 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, the German Producer Price Index is scheduled for 3:00 PM during Asian trading hours, followed by Taiwan’s current account balance at 5:20 PM during European trading hours, remarks by MPC member Haskell at 6:45 PM, Canadian retail sales at 9:30 PM during U.S. trading hours,at 9:45 PM, remarks by Williams, President of the New York Fed; at 10:00 PM, remarks by Bowman, Fed Governor; at 12:00 AM, remarks by Powell, Fed Vice Chair; and at 4:00 AM, remarks by Lagarde, ECB President. I intend to watch carefully to see if Lagarde’s remarks will shift the direction of the euro.
Author: Keisuke Sakurai
