Attention is turning to the euro, as the impact of the decline in German PPI appears to have been limited
22.08.2023
- U.S. Existing Home Sales
- UK: CBI Developments
In the U.S. currency market yesterday, with no major economic indicators released, the U.S. dollar rose against the yen. The USD/JPY pair climbed from 145.147 to 146.401, moving in line with the 20-period moving average (MA) on the hourly chart. From a technical perspective, since the USD/JPY has rebounded with the 20-period MA on the 4-hour chart acting as support, we should keep a close eye on the dollar’s price action to see if it will break above last week’s high of 146.564.
Despite the fact that Germany’s July Producer Price Index (PPI), released yesterday, fell sharply year-over-year from 0.1% in the previous month to -6.0%, the euro rose against the U.S. dollar. The EUR/USD pair rose from 1.0866 at the start of the week to 1.0913. During today’s Asian trading session, it has climbed as high as 1.0916.With today’s rise, the EUR/USD pair has already reached its recent high on the 4-hour chart, so we should keep an eye on the euro’s strength.
Today’s economic indicators include Norway’s Q2 GDP and the UK’s public sector net debt at 3:00 PM, the Eurozone’s current account balance at 5:00 PM,Philippines: Retail Sales at 17:00, UK: CBI Trends at 19:00, US: Remarks by Barkin, President of the Richmond Fed, at 20:30, US: Existing Home Sales and US: Richmond Fed Manufacturing Index at 23:00, and US: Remarks by Goolsbee, President of the Chicago Fed, and Remarks by Bowman, Fed Governor, at 27:30.We will closely monitor the euro’s movements, as it has remained resilient despite a sharp deterioration in German PPI.
Author: Keisuke Sakurai
