All eyes are on whether the US dollar will remain strong following the release of economic indicators in the US
19.07.2023
- U.S. Housing Starts
- U.S. MBA Mortgage Applications Index
In yesterday's U.S. currency trading, the U.S. dollar fell against the yen after the U.S. June industrial production figure, released yesterday, came in at -0.5%, worse than the previous month's -0.2%.The USD/JPY pair fell from 138.921 to 137.667, briefly dipping below the key 138 yen level. However, during today’s Asian trading session, the U.S. dollar has emerged as the strongest currency, with the USD/JPY pair rising to 139.418. We will be watching closely to see if the dollar continues to rise into the European session.
European currencies traded in a tight range against the U.S. dollar, with the euro holding steady ahead of today’s European CPI release. The EUR/USD pair traded between 1.1209 and 1.1274 without a clear direction, marking its third consecutive day of sideways movement.From a technical perspective, while the daily RSI for EUR/USD remains above the overbought threshold of 70, the 20-period moving average (MA) on the 4-hour chart continues to act as a support level. We will be watching to see if the pair remains supported by the 4-hour 20-MA and continues to trade in the upper price range.
Today, at 3:00 PM: UK Consumer Price Index, UK Producer Price Index, UK Retail Price Index; at 5:00 PM: South African Consumer Price Index; at 6:00 PM: Eurozone Consumer Price Index; at 8:00 PM: South African Retail Sales;the US MBA Mortgage Applications Index, at 9:30 PM US housing starts and building permits, at 11:30 PM US weekly crude oil inventories, at 1:00 AM UK remarks by BOE Deputy Governor Ramsden, and at 2:00 AM US 20-year Treasury auction. We will be watching to see if the US dollar remains strong following these US-time economic releases.
Author: Keisuke Sakurai
