With the yen showing signs of strengthening, will the market wait and see how prices move at the end of the month?
28.11.2023
- U.S. S&P Case-Shiller Home Price Index
- Richmond Fed Manufacturing Index
In the U.S. currency market yesterday, despite the absence of major economic indicators or significant comments from key figures, the U.S. dollar became the weakest currency toward the close. The EUR/USD pair rose slightly from 1.0925 to 1.0959. The 20-period moving average on the 4-hour chart acted as a support line, triggering a rebound. On the daily chart, although the RSI has risen above 70, the upward trend remains intact, so we will be watching for potential gains during European trading hours.
European currencies fell against the yen yesterday after ECB President Lagarde stated, “Overall inflation is likely to rise again in the coming months.” The euro weakened against the yen amid concerns about the European economy and a potential rise in interest rates.The EUR/JPY pair fell by just under 120 pips from 163.717 to 162.546. It broke below the 75-period moving average on the 4-hour chart. Furthermore, the yen has continued to strengthen during today’s Asian trading session, and the EUR/JPY pair appears poised to break below the 162-yen level.
Today’s schedule includes the German GfK Consumer Confidence Index at 4:00 PM, the French Consumer Confidence Index at 4:45 PM, remarks by German Bundesbank President Nagel at 5:00 PM, the Eurozone Money Supply at 6:00 PM, the Brazilian Extended Consumer Price Index at 9:00 PM, the U.S. Housing Price Index at 11:00 PM,23:00: U.S. S&P Case-Shiller Home Price Index, 24:00: U.S. Richmond Fed Manufacturing Index and remarks by U.S. Chicago Fed President Goolsbee, 24:30: U.S. Dallas Fed Services Sales Index, 25:00: remarks by European Central Bank President Lagarde, and 27:00: U.S. 7-year Treasury auction.Given the current trend toward a stronger yen, we intend to carefully monitor price movements as the month comes to a close.
Author: Keisuke Sakurai
