Market participants are likely to keep a close eye on the euro’s movement against the yen, as resistance levels appear to be strengthening.
07.09.2023
- Europe: Second-Quarter GDP
- U.S. Initial Jobless Claims
In yesterday’s U.S. currency trading, 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 session, traders should remain vigilant regarding price movements during the U.S. session.
European currencies saw the euro fluctuate against the yen after yesterday’s release of July retail sales data for the eurozone showed a year-on-year decline of 1.0%, down from the previous month’s 0.3% drop. The EUR/JPY pair traded without a clear direction between 157.767 and 158.458, exhibiting nervous movements as it hovered around the 20-period moving average on the hourly chart.During today’s Asian session, a slight yen-strengthening trend is evident, so we will be watching closely to see if this puts a halt to the euro’s upward momentum.
Today, at 2:45 PM, Swiss employment figures; at 3:00 PM, German industrial production; at 3:45 PM, Frenchtrade balance and current account balance, at 18:00: Eurozone Q2 GDP and South Africa’s trade balance, at 21:00: Mexico’s Consumer Price Index, at 21:30: U.S. initial jobless claims and U.S. nonfarm productivity, and at 23:00: Canada’s Ivey PMI and remarks by U.S. Federal Reserve Bank of Philadelphia President Harker,Remarks by Harker, President of the Philadelphia Fed; at 23:30, US Weekly Natural Gas Inventories; and at 24:45, US Remarks by Goolsbee, President of the Chicago Fed. We will be closely monitoring the movement of the euro against the yen, as the currency faces resistance on the upside.
Author: Keisuke Sakurai
