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
- U.S. Initial Unemployment Insurance Claims
- Philadelphia Fed Business Conditions Index
In the U.S. currency market yesterday, the U.S. dollar faced resistance despite the fact that the U.S. July Leading Economic Index, released yesterday, improved to -0.4% from -0.7% the previous month.The EUR/USD pair fluctuated between 1.0856 and 1.0917, trading across the 20-period moving average on the hourly chart.During today’s Asian session, price action has continued to fluctuate across the 20-period moving average, resulting in a directionless market. We will wait and see whether the U.S. dollar will decline following the release of economic indicators during the European session.
European currencies saw the euro fall against the yen, despite the fact that the seasonally adjusted EU trade balance for June—released yesterday—improved from a deficit of 900 million euros in the previous month to a surplus of 12.5 billion euros. The euro/yen exchange rate fell by about 1 yen, from 159.297 to 158.267.It continues to trend lower during today’s Asian trading session. We should keep an eye on the euro’s downside potential to see if the rebound from the yen’s weakness during the Obon holiday period will continue.
Today, during Asian trading hours, UK retail sales, Norway’s second-quarter GDP, and Sweden’s capacity utilization rate will be released at 15:00; Swiss industrial production will be released at 15:30; and during European trading hours, Thailand’s foreign exchange reserves will be released at 16:30,at 18:00 the Eurozone Consumer Price Index, at 20:30 India’s foreign exchange reserves, at 21:00 Mexico’s retail sales, and at 21:30 U.S. time, Canada’s industrial production and raw materials price index.We will be closely monitoring the direction of cross-yen pairs, which have reversed course from yen weakness to yen strength.
Author: Keisuke Sakurai
