Will the market wait and see how prices move at the end of the month amid the yen's strengthening trend?
28.11.2023
- U.S. S&P Case-Shiller Home Price Index
- Richmond Fed Manufacturing Index (U.S.)
In the U.S. currency market the previous day, despite the absence of major economic indicators or remarks from key officials, 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 continues, so we will be watching for potential gains during European trading hours.
Regarding European currencies, ECB President Lagarde stated yesterday that “overall inflation is likely to rise again in the coming months.” Concerns about the European economy and a potential rise in interest rates caused the euro to fall against the yen.The euro/yen pair fell by just under 120 pips, from 163.717 to 162.546, and 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 euro/yen pair appears poised to break below the 162-yen level.
Today, the German GfK Consumer Confidence Index will be released at 16:00, the French Consumer Confidence Index at 16:45, remarks by German Bundesbank President Nagel at 17:00, the Eurozone Money Supply at 18:00,at 9:00 PM, Brazil’s Broad Consumer Price Index; at 11:00 PM, the U.S. Housing Price Index; at 11:00 PM, the U.S. S&P Case-Shiller Home Price Index; at midnight, the U.S. Richmond Fed Manufacturing Index and remarks by U.S. Federal Reserve Governor Goolsbee:Chicago Fed President’s remarks, 24:30 U.S. Dallas Services Sales Index, 25:00 EU ECB President Lagarde’s remarks, and 27:00 U.S. 7-year Treasury auction are scheduled.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
