All eyes are on the euro’s movements ahead of tomorrow’s services PMI release
04.07.2023
- Remarks by Nagel, President of the German Central Bank
- U.S. markets are closed for a holiday
In yesterday’s U.S. trading session, the Canadian dollar was dragged down by the U.S. dollar, resulting in a seesawing market against the yen. The CAD/JPY pair rose in an attempt to test this year’s high of 109.501, set on the 27th of last month, but was rejected in the low 109-yen range and continues to hover around the 20-period moving average on the hourly chart.In today’s Asian session, CAD/JPY is trading around 109.122. However, since the daily RSI has exceeded the overbought threshold of 70 and stands at 74, caution is warranted regarding price movements during the European session.
Ahead of tomorrow’s services PMI release, the euro is facing resistance against the yen. The EUR/JPY pair opened today with a downward gap of about 50 pips, but the gap has since been filled, and during Asian trading hours it is trading just below the 20-period moving average at around 157.746.From a technical perspective, the RSI on the 4-hour chart is at 56, below the 70 level, indicating room for further upside. Therefore, we will be watching price action closely during European trading hours.
Today, the German trade balance is scheduled for release at 3:00 PM during Asian trading hours; the Brazilian Consumer Price Index at 5:00 PM during European trading hours; Brazilian industrial production and the Turkish non-performing loan ratio at 8:00 PM; New Zealand dairy prices at 9:00 PM during U.S. trading hours; and remarks by Nagel, President of the German Federal Bank, at 1:00 AM.Since U.S. markets are closed today for a holiday, we want to carefully assess currency strength and weakness during European trading hours.
Author: Keisuke Sakurai
