Attention Turns to the Euro's Upside Potential Against the U.S. Dollar Over the Weekend
10.08.2023
- Harker (U.S.): Remarks by the President of the Federal Reserve Bank of Philadelphia
- U.S. Weekly Natural Gas Inventories
In U.S. currency trading yesterday, the Canadian dollar rose against the yen despite the fact that Canada’s June housing starts, released yesterday, fell sharply to 6.1% month-over-month from the previous reading of 10.5%. The CAD/JPY pair rose from 106.556 to 107.395.The trend of a weaker yen has continued during today’s Asian trading session. On the higher-timeframe weekly chart, the pair is in an uptrend with solid support at the 20-day moving average (20MA), so we will be watching closely to see if the Canadian dollar continues to rise against the yen heading into the weekend.
Among European currencies, the euro rose slightly against the U.S. dollar. The euro/dollar pair rose from 1.0948 to 1.0995.It rose to just below the 200-period EMA on the hourly chart. On the daily chart, it is currently trading between the 75-period MA and the 20-period MA, making it difficult to gauge the direction; however, on the weekly chart, the Dow Theory—which calls for higher highs and higher lows—is holding true, so we will be watching to see if prices continue to rise heading into next week.
Today, at 15:00, Norway’s Consumer Price Index and Producer Price Index will be released; at 16:00, Turkey’s employment statistics and industrial production; at 18:30, South Africa’s mining production; at 19:00, Israel’s trade balance; at 20:00, South Africa’s manufacturing output;at 9:30 p.m., U.S. initial jobless claims, the U.S. Consumer Price Index, and U.S. weekly natural gas inventories; at 2:00 a.m., a U.S. 30-year Treasury auction; and at 5:15 a.m., remarks by U.S. Federal Reserve Bank of Philadelphia President Harker.We will be watching for upside potential in the euro, which has risen against the U.S. dollar.
Author: Keisuke Sakurai
