Should we keep a close eye on the direction of cross-yen pairs, which have shifted from a weak yen to a strong yen?

Should we keep a close eye on the direction of cross-yen pairs, which have shifted from a weak yen to a strong yen?

18.08.2023

In yesterday’s U.S. currency trading, the dollar’s upside was capped despite the U.S. July Leading Economic Index—released yesterday—improving from -0.7% in the previous month to -0.4%. The EUR/USD pair fluctuated between 1.0856 and 1.0917, trading above and below the 20-period moving average on the hourly chart.During today’s Asian session, price action has continued to fluctuate around the 20-period moving average, resulting in a directionless market. We will wait and see if the US dollar falls following the release of economic indicators during the European session.

European currencies fell against the yen despite the fact that the seasonally adjusted EU trade balance for June, released yesterday, improved from a deficit of €900 million in the previous month to a surplus of €12.5 billion. The euro/yen exchange rate dropped by about 1 yen, from 159.297 to 158.267. It continues to decline during today’s Asian trading session. We should keep an eye on the euro’s downward trend to see if the rebound from the yen’s weakness during the Obon holiday period will continue.

Today’s schedule includes UK retail sales, Norway’s Q2 GDP, and Sweden’s capacity utilization at 15:00 Asia time; Swiss industrial production at 15:30; Thailand’s foreign exchange reserves at 16:30 Europe time; the Eurozone’s consumer price index at 18:00; India’s foreign exchange reserves at 20:30;and at 9:00 PM, Mexico’s retail sales. During U.S. trading hours, at 9:30 PM, Canada’s industrial production and raw materials price index are scheduled. We will be closely monitoring the direction of cross-yen pairs, which have shifted from a weak yen to a strong yen.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran