Attention Turns to the Euro, as the Impact of Weaker German PPI Was Limited

Attention Turns to the Euro, as the Impact of Weaker German PPI Was Limited

22.08.2023

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 rose from 145.147 to 146.401, tracking the 20-period moving average (MA) on the hourly chart.From a technical perspective, since USD/JPY has rebounded with the 4-hour 20-MA acting as support, traders 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.

European currencies rose against the U.S. dollar, even though Germany’s July Producer Price Index (PPI), released yesterday, fell sharply year-over-year from 0.1% the previous month to -6.0%.The euro/dollar 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 euro/dollar pair has already reached the recent high on the 4-hour chart, so it will be worth keeping an eye on the euro’s strength.

Today’s economic indicators include Norway’s second-quarter GDP and the UK’s net public sector debt at 15:00; the Eurozone’s current account balance and the Philippines’ retail sales at 17:00; the UK’s CBI Business Survey at 19:00; and U.S. Federal Reserve Governor Barkin’s remarks at 20:30:remarks by Richmond Fed President, at 23:00: U.S. existing home sales and the Richmond Fed Manufacturing Index, and at 27:30: remarks by U.S. Chicago Fed President Goolsbee and remarks by U.S. Federal Reserve Governor Bowman.We will be closely monitoring the euro’s movements, as it has remained resilient despite a sharp deterioration in German PPI.