All eyes are on whether the cross-yen pairs will continue to fall

All eyes are on whether the cross-yen pairs will continue to fall

30.05.2023

In the previous day’s U.S. currency trading, the Canadian dollar rose against the euro as U.S. markets were closed for Memorial Day.The EUR/CAD pair fell from 1.4603 to 1.4535, reaching the lower boundary of the daily range that has been in place since the 16th of this month. From a technical perspective, the pair has fallen just below the weekly 20-day moving average (MA) and is showing signs of breaking below the weekly 200-day moving average (SMA). We will be watching for signs of a potential reversal during European trading hours to see if the Canadian dollar will continue to rise against the euro.

Among European currencies, the euro fell against the yen. The EUR/JPY pair dropped by approximately 90 pips from 151.067 to 150.113, reflecting a strengthening yen. On the daily chart, the EUR/JPY is showing a divergence where the RSI is falling while the candlesticks are rising. Therefore, we will need to closely monitor currency strength to determine whether the yen’s upward trend will continue following the release of economic indicators during European trading hours.

Today’s economic indicators include Switzerland’s Q1 GDP and KOF Leading Index, and Turkey’s trade balance at 4:00 PM; South Africa’s fiscal balance at 9:00 PM;at 21:30: Canada’s Q1 current account balance; at 22:00: the U.S. S&P/Case-Shiller Home Price Index and U.S. Q1 Home Price Index; at 23:00: the U.S. Consumer Confidence Index; at 23:30: the U.S. Dallas Fed Manufacturing Activity Index; and at 02:00: remarks by U.S. Richmond Fed President Barkin.Amid the ongoing yen appreciation trend, we should watch to see if cross-yen pairs continue to decline.