Will the strength of European currencies seen since yesterday continue? All eyes are on price movements ahead of the ECB meeting.
24.10.2023
- Germany: Manufacturing/Services PMI
- Richmond Fed Manufacturing Activity Index
In the U.S. currency market the previous day, the U.S. dollar fell toward the end of the U.S. trading session and ultimately became the weakest currency. The USD/JPY pair plummeted from 149.993 to 149.557. As the pair approached the key 150-yen level, selling pressure continued to cap its upside.However, on the 4-hour chart, price action has remained confined to a narrow range around the 20-period moving average (MA), and since the pair is trading above the 75-period MA on that timeframe, we need to carefully assess whether any distinctive price movements will emerge before next week’s FOMC meeting.
Among European currencies, the pound, like the euro, emerged as the strongest currency and gained ground against all other currencies. The GBP/JPY pair rose from 182.036 to 183.489.It surged sharply from just below the 200-period SMA on the 4-hour chart, without retesting that level. GBP/JPY continues to aim higher during today’s Asian session and is attempting to test the recent high of 183.800. We will be watching to see if the pound continues to rise against the yen heading into the European session.
Today’s schedule includes the UK Employment Report and the German GfK Consumer Confidence Survey at 15:00; the French Manufacturing and Services PMIs at 16:15; the German Manufacturing and Services PMIs at 16:30; the Eurozone Manufacturing and Services PMIs at 17:00; and the UKManufacturing/Services PMI, at 21:00 the Hungarian central bank’s policy rate and statement, at 21:30 remarks by ECB President Lagarde, at 22:45 the U.S. Manufacturing/Services PMI, and at 23:00 the Richmond Fed Manufacturing Activity Index.We will be watching price movements ahead of the ECB meeting to see if the strength in European currencies seen since yesterday continues.
Author: Keisuke Sakurai
