Will the market wait and see which direction the euro takes now that its consecutive gains have paused?

Will the market wait and see which direction the euro takes now that its consecutive gains have paused?

17.11.2023

In the U.S. currency market yesterday, the U.S. dollar weakened significantly against the yen despite the fact that the Philadelphia Fed’s November Business Outlook Index, released yesterday, came in at -5.9—better than the market forecast of -11.5. The USD/JPY pair fell from 151.425 to 150.287, a move that offset the gains from the day before yesterday.From a technical perspective, although USD/JPY remains above the 20-day moving average on the daily chart, the RSI is showing signs of turning downward, so caution is warranted regarding price movements during U.S. trading hours.

European currencies fell against the yen yesterday after ECB President Lagarde stated, “If European banks are forced to sell the bonds they hold to raise funds, they could suffer significant losses.”The EUR/JPY pair fell from 164.302 to 163.254. The decline halted just below the 20-period moving average (MA) on the 4-hour chart. However, since the EUR/JPY remains in an uptrend along the 10-period MA on the daily chart, traders should pay close attention to economic data releases during European trading hours.

Today’s schedule includes UK retail sales and Sweden’s unemployment rate at 4:00 PM, Swiss industrial production at 4:30 PM, remarks by ECB President Lagarde at 5:30 PM, the EU current account balance at 6:00 PM, the EU consumer price index at 7:00 PM, and at 10:00 PM, remarks byremarks by German Bundesbank President Nagel, at 10:10 PM remarks by UK BOE Deputy Governor Ramsden, at 10:15 PM remarks by UK MPC member Green, at 10:30 PM Canadian international securities turnover, US housing starts, and Canadian industrial production, and at 10:45 PM remarks by US Fed Vice Chair Barre.I intend to carefully monitor the direction of the euro, as its recent streak of gains has paused.