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 U.S. currency trading the previous day, with U.S. markets closed for Memorial Day, the Canadian dollar rose against the euro. 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 EUR/CAD pair has fallen just below the weekly 20-day moving average (MA) and is showing signs of breaking below the weekly 200-day simple 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 euro/yen pair dropped by about 90 pips from 151.067 to 150.113, reflecting a trend toward yen strength.On the daily chart, the euro/yen pair is showing a divergence—with candlesticks rising while the RSI is falling—so we will need to carefully monitor currency strength to see if the yen’s appreciation trend continues following the release of economic indicators during European trading hours.

Today’s economic indicators include Switzerland’s Q1 GDP and KOF Leading Index at 16:00, Turkey’s trade balance at 21:00, South Africa’s fiscal balance at 21:30, Canada’s Q1 current account balance at 22:00, and 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 26:00, remarks by U.S. Richmond Fed President Barkin.Amid the yen’s strengthening trend, we should watch to see if cross-yen pairs continue to decline.