With regard to currency strength, attention should be paid to the upside potential of European currencies, which remain firm

With regard to currency strength, attention should be paid to the upside potential of European currencies, which remain firm

07.11.2023

In the previous day’s U.S. currency trading, the U.S. dollar weakened toward the end of the U.S. trading session—contrary to rising U.S. Treasury yields—causing the USD/JPY pair to face resistance at higher levels. While other yen crosses, such as the EUR/JPY and GBP/JPY, formed upward trends, the USD/JPY pair was limited to a modest rise from the upper 149-yen range to the 150-yen level, hovering around the 20-period moving average (MA) on the hourly chart.From a technical perspective, while USD/JPY has entered a rebound phase from the 200-period EMA on the 4-hour chart, it remains below the 20-period MA (base line) on the daily chart, so caution is warranted regarding resistance at the month’s high.

European currencies rose against the yen after the final reading of the Eurozone’s October services PMI, released yesterday, came in at 47.8, unchanged from the previous month. The euro/yen pair rose from 159.959 to 160.981, slightly surpassing this year’s high. The pair is currently in a clear uptrend along the 10-period moving average on the hourly chart, and since it has not seen a significant pullback during today’s Asian session, we will be watching for further upside potential during European trading hours.

Today’s schedule includes South Africa’s foreign exchange reserves at 3:00 PM, Switzerland’s employment statistics at 3:45 PM, the UK’s Halifax house prices and Germany’s industrial production at 4:00 PM, Switzerland’s foreign exchange reserves at 5:00 PM, the Eurozone’s producer price index at 7:00 PM, and at 9:30 PM, Kashkari:Minneapolis Fed President Kashkari’s remarks, Canada’s trade balance and the U.S. trade balance at 10:30 PM, U.S. Redbook large-scale retail sales at 10:55 PM, U.S. Federal Reserve Board Member Barr’s remarks at 11:15 PM, Turkey’s Ministry of Finance cash balance at 11:30 PM, and U.S. consumer credit balances at 11:00 PM.In terms of currency strength, we will cautiously monitor the upside potential of the firm European currencies.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran