Market Participants May Keep a Close Eye on the Euro’s Movement Against the Yen as Resistance Levels Strengthen

Market Participants May Keep a Close Eye on the Euro’s Movement Against the Yen as Resistance Levels Grow Heavier

07.09.2023

In the U.S. currency market yesterday, the U.S. dollar fell immediately after the release of the U.S. August PMI (Purchasing Managers’ Index), which declined to 50.5 from the previous reading of 51.0. However, the U.S. August IAM Non-Manufacturing Index, released later, rose to 54.5 from 52.7 the previous month.The EUR/USD pair plummeted from 1.0748 to 1.0702. As the EUR/USD pair continues to trend downward during today’s Asian trading session, traders should remain vigilant regarding price movements during U.S. trading hours.

European currencies saw the euro trade in a narrow range against the yen after yesterday’s release of July retail sales data for the eurozone showed a year-over-year decline of 1.0%, down from the previous month’s 0.3% decline.The EUR/JPY pair traded without a clear direction between 157.767 and 158.458, exhibiting nervous fluctuations as it moved back and forth across the 20-period moving average on the hourly chart. During today’s Asian trading session, a slight trend toward yen appreciation is evident, so we will be watching closely to see if this puts a halt to the euro’s upward momentum.

Today, at 14:45, Swiss employment figures; at 15:00, German industrial production; at 15:45, French trade balance and current account balance; at 18:00, Eurozone second-quarter GDP and South African trade balance;at 9:00 PM, Mexico’s Consumer Price Index; at 9:30 PM, U.S. Initial Jobless Claims and U.S. Nonfarm Productivity Index; at 11:00 PM, Canada’s Ivey Purchasing Managers’ Index and remarks by U.S. Harker,President of the Federal Reserve Bank of Philadelphia, at 11:30 p.m. U.S. weekly natural gas inventories, and at 12:45 a.m. U.S. remarks by Goolsbee, President of the Federal Reserve Bank of Chicago. We will be closely monitoring the euro’s movement against the yen, as resistance levels are becoming increasingly firm.