All eyes are on whether the central bank governor’s remarks at the ECB Forum will shift the trend toward a weaker yen

All eyes are on whether the comments by central bank governors at the ECB Forum will shift the trend of yen weakness

28.06.2023

In yesterday’s U.S. trading session, the U.S. dollar fell against the euro despite the Dollar Index temporarily rising to 102.6. The EUR/USD pair rose by approximately 70 pips from 1.0902 to 1.0975, forming an uptrend along the 10-period moving average on the hourly chart.During today’s Asian session, the EUR/USD pair is showing a rebound supported by the 20-period moving average on the hourly chart, so we will be closely monitoring whether the US dollar’s decline continues into the European session.

European currencies saw the euro emerge as the strongest currency after ECB President Lagarde stated in her keynote speech at yesterday’s ECB Forum that “unless there are significant changes to the outlook, we will continue raising rates in July.” The euro/yen pair rose to 157.935, maintaining a level not seen in 15 years—since the Lehman shock in September 2008.During today’s Asian trading session, the 20-period moving average is providing solid support, but with key officials’ remarks scheduled later, we should remain cautious about the direction of the market.

Today’s economic indicators include the German GfK Consumer Confidence Survey at 3:00 PM, the French Consumer Confidence Index at 3:45 PM, the Eurozone M3 Money Supply at 5:00 PM, remarks by MPC member Pill at 7:30 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, U.S. Wholesale Inventories at 9:30 PM,22:30: Remarks by Bank of Japan Governor Ueda, remarks by Bank of England Governor Bailey, remarks by ECB President Lagarde, and remarks by Fed Chair Powell; 23:30: U.S. weekly crude oil inventories; and 26:00: U.S. 7-year Treasury auction.We will be closely monitoring whether the central bank governors’ remarks at the ECB Forum lead to shifts in currency strength.