Should We Be Wary of the Upside Potential for GBP/JPY, Which Has Hit a New Year-to-Date High?
15.08.2023
- Kashkari (U.S.): Remarks by the President of the Minneapolis Fed
- U.S. New York Fed Manufacturing Index
In the U.S. currency market the previous day, the U.S. dollar emerged as the strongest currency during U.S. trading hours, causing the EUR/USD pair to fall from 1.0960 to 1.0874. On the daily chart, the EUR/USD pair broke sharply below both the 20-day and 75-day moving averages and continued its decline, setting a new low for the month.On the weekly chart, the pair is currently trading just below the 20-day moving average (MA). If it breaks below the weekly 20-day MA, there will be no support until the 75-day MA around 1.0807, so traders should be cautious about the direction of the market during European trading hours.
Among European currencies, the pound held firm, trailing only the U.S. dollar, which has become the strongest currency. The pound/yen pair rose from 183.456 to 184.738, setting a new year-to-date high.On the daily chart, the pound has posted six consecutive bullish candles, and the daily RSI has not yet reached the overbought level of 70, with a buffer around 62. We will carefully monitor whether the pound’s rise against the yen continues into U.S. trading hours.
Today’s schedule includes the UK Employment Report and Sweden’s Consumer Price Index at 15:00, Switzerland’s Producer Import Prices at 15:30, Germany’s ZEW Economic Sentiment Index at 18:00, Canada’s Manufacturing Sales and U.S. Retail Sales at 21:30,Canada’s Consumer Price Index, U.S. Import and Export Price Indices, and the U.S. New York Fed Manufacturing Index; at 23:00, U.S. Business Inventories and the U.S. NAHB Housing Market Index; and at 24:00, remarks by Kashkari, President of the Minneapolis Fed.We should remain cautious about the upside potential of GBP/JPY, which has hit a new high for the year.
Author: Keisuke Sakurai
