Will the weekend's currency strength and weakness become clearer? All eyes are on price movements during U.S. trading hours.

Will the weekend's currency strength and weakness become clearer? All eyes are on price movements during U.S. trading hours.

21.07.2023

In the U.S. currency market yesterday, the U.S. dollar rose against the yen after the July Philadelphia Fed Business Outlook Index, released yesterday, showed that the decline narrowed to -13.5 from -13.7 the previous month.The USD/JPY pair broke through the key 140-yen level from 139.125 and touched 140.496. It has remained in the 140-yen range during today’s Asian trading session. As the USD/JPY pair has moved above the 20-period moving average on the hourly chart following yesterday’s rise, it will be worth watching whether the U.S. dollar’s strength holds during U.S. trading hours.

Despite the preliminary July consumer confidence index for the eurozone, released yesterday, improving to -15.1 from -16.1 the previous month, the euro fell against the yen toward the close of U.S. trading. The euro/yen pair fell from 156.617 to 155.854.It broke below the 20-period moving average (MA) on the 4-hour chart and briefly fell to around the 75-period MA. During today’s Asian trading session, the yen has resumed its weakening trend, and the EUR/JPY pair has rebounded to 156.253. We will monitor the situation to determine whether the euro will continue to rise into the European trading session.

Today, UK retail sales are scheduled for 15:00 during Asian trading hours, followed by Thailand’s foreign exchange reserves at 16:30 during European trading hours, the Philippines’ retail sales at 17:00,at 19:30, Russia’s policy rate; at 20:30, India’s foreign exchange reserves; and during U.S. trading hours at 21:30, Canada’s retail sales and Canada’s new home price index. We will be closely monitoring price movements during U.S. trading hours to see if the strength and weakness of currencies over the weekend become clearer.