Will the yen's strength reignite due to end-of-month factors? Keep a close eye on whether cross-yen pairs will fall.
30.10.2023
- Germany's Consumer Price Index
- UK Consumer Credit Balances
Last weekend, the U.S. dollar weakened as expectations for an interest rate hike at this week’s FOMC meeting on November 1 receded, with the majority of opinions favoring a hold on rates. The euro rose against the dollar from 1.0535 to 1.0597, avoiding a decline toward this month’s low.The monthly candle, which will close this week, has formed a doji, and with some upward pressure still evident, it will be worth watching to see if the euro can stage a comeback heading into the final day of October.
Among European currencies, the pound fell against the yen. The GBP/JPY pair dropped by just under 150 pips, from 182.501 to 181.039, returning to the lower end of its daily range.From a technical perspective, GBP/JPY formed a bearish candlestick with an upper shadow on the weekly chart, and the weekly RSI has entered a downtrend after moving above 70. We will need to carefully monitor the situation, keeping an eye on end-of-month factors, to see if the pound will continue to weaken against the yen and face resistance at higher levels.
Today, at 15:00, German retail sales and the German import price index, as well as South African money supply; at 17:00, the Swiss KOF Leading Index; at 18:00, German third-quarter GDP; at 18:30, UK consumer credit balances and UK money supply;at 7:00 p.m., the Eurozone Economic Sentiment Index and Eurozone Consumer Confidence Index; at 10:00 p.m., Germany’s Consumer Price Index; and at 10:30 p.m., the U.S. Dallas Fed Manufacturing Activity Index. We will be closely monitoring whether end-of-month factors will reignite yen strength and whether cross-yen pairs will decline.
Author: Keisuke Sakurai
