All eyes are on whether the euro-yen pair will rebound following the release of the ECB Governing Council minutes
13.07.2023
- Summary of the ECB Governing Council Meeting Released
- UK Industrial Production
In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen following the Bank of Canada’s (BOC) policy rate announcement, which raised the rate by 0.25 percentage points to 5.00%, in line with market consensus. Although the CAD/JPY pair initially moved higher immediately after the announcement, the momentum did not hold, and it eventually fell from 106.093 to 104.749.On the higher timeframe weekly chart, the RSI has touched 70 and entered a downward trend, so we will need to monitor closely whether the downtrend will continue for the time being.
Among European currencies, the euro fell slightly against the yen ahead of today’s release of the ECB Governing Council minutes. The EUR/JPY pair dropped by approximately 110 pips from 154.512 to 153.398. It subsequently rebounded, recovering to 154.481 during today’s Asian trading session.From a technical perspective, the 200-period simple moving average (SMA) on the 4-hour chart is currently acting as support for the EUR/JPY pair, so it will be worth watching to see if the pair enters a rebound phase from here.
Today, at 3:00 PM, UK GDP, UK industrial production, and the UK trade balance will be released; at 3:45 PM, the French consumer price index; and at 6:00 PM, EurozoneIndustrial Production, at 8:30 PM: Eurozone ECB Meeting Minutes, at 9:30 PM: US Initial Jobless Claims and US Producer Price Index, at 11:30 PM: US Weekly Natural Gas Inventories, at 12:10 AM: US Daily:Remarks by the President of the San Francisco Fed, 2:00 AM: US 30-Year Treasury Auction, 3:00 AM: US Budget Balance, and 7:45 AM the following day: Remarks by Fed Governor Waller. We will be watching for any directional cues, particularly whether the Euro/Yen pair rebounds following the release of the ECB Governing Council minutes.
Author: Keisuke Sakurai
