Will the weekend's currency strength and weakness become clearer? Keep an eye on price movements during U.S. trading hours.

Will the weekend's currency strength and weakness become clearer? Keep an eye on price movements during U.S. trading hours.

21.07.2023

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen after the July Philadelphia Fed Business Outlook Index, released yesterday, showed a narrowing of the decline 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, attention will focus on whether the dollar’s strength holds during U.S. trading hours.

European currencies saw the euro fall against the yen toward the close of U.S. trading, despite the preliminary July Eurozone consumer confidence index released yesterday improving to -15.1 from -16.1 the previous month. The EUR/JPY pair fell from 156.617 to 155.854. It broke below the 20-period moving average (MA) on the 4-hour chart and briefly dropped to around the 75-period MA.During today’s Asian session, the yen has weakened again, and the EUR/JPY pair has rebounded to 156.253. We will monitor the market to see if the euro continues to rise into the European session.

Today, the schedule includes UK retail sales at 15:00 (Asia time), Thailand’s foreign exchange reserves at 16:30 (Europe time), Philippine retail sales at 17:00, Russia’s policy rate at 19:30, India’s foreign exchange reserves at 20:30, and Canadian retail sales and the Canadian new home price index at 21:30 (US time).We will be closely monitoring price movements during U.S. trading hours to see if the strength of currencies over the weekend becomes clearer.