Should we keep a close eye on the direction of the euro, which has entered a technical recession?
09.06.2023
- Canada: Employment Statistics
- Added capacity and equipment utilization rate
In the U.S. currency market yesterday, the dollar fell against the yen after the latest U.S. initial jobless claims rose to 261,000 from 232,000 the previous week. The USD/JPY pair fell from 140.212 to 138.758. Over the past week, the pair has continued to trade in a range straddling the 10-day moving average.USD/JPY is currently facing the 50% Fibonacci retracement level, which corresponds to last year’s high and this year’s low. Until next week’s FOMC meeting, the pair is likely to continue trading in a range as it searches for direction.
European currencies saw the euro trade in a tight range against the yen after the euro entered a technical recession following yesterday’s release of the eurozone’s first-quarter real GDP, which contracted by 0.1% quarter-on-quarter, marking the second consecutive quarter of contraction.EUR/JPY has been trading in a range between 149.592 and 150.051, and is testing the upside during today’s Asian session. If EUR/JPY extends higher, it will be worth watching to see if it breaks through the recent high of 151.069.
Today, at 3:00 PM, Norway’s Consumer Price Index and Producer Price Index, Sweden’s Industrial Production, and Sweden’s New Manufacturing Orders will be released; at 4:00 PM, Turkey’s Industrial Production; and at 7:30 PM, Russia’skey interest rates, at 8:30 PM India’s foreign exchange reserves, at 9:00 PM Mexico’s industrial production, at 9:30 PM Canada’s employment report and capacity utilization, and at 1:00 AM Russia’s Consumer Price Index. We will be closely monitoring the direction of the euro, which has entered a technical recession.
Author: Keisuke Sakurai
