Will the market wait and see how the euro performs following the decline in the Ifo Business Climate Index?
19.12.2023
- European Consumer Price Index
- Hong Kong Employment Statistics
Among U.S. currencies yesterday, the Canadian dollar fell against the U.S. dollar.The USD/CAD pair rebounded from 1.3349 to 1.3409, avoiding a fourth consecutive day of losses. On the daily chart, the USD/CAD pair has touched the -3σ line of the Bollinger Bands, and the daily RSI has fallen below the oversold level of 30 to 26. Therefore, we need to carefully assess whether the US dollar’s rebound will continue during US trading hours.
European currencies saw the euro rise slightly against the U.S. dollar, despite the fact that Germany’s December IFO Business Climate Index, released yesterday, deteriorated to 86.4 from 87.3 the previous month.The EUR/USD pair rebounded from 1.0890 to 1.0930, breaking above the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 20-period MA is acting as a support level, and prices have continued to rise during today’s Asian session. We will closely monitor whether the EUR/USD pair continues to rebound during the European session.
Today’s schedule includes a press conference by Bank of Japan Governor Ueda at 3:30 p.m., Switzerland’s trade balance at 4:00 p.m., Hong Kong’s employment statistics at 5:30 p.m., the Eurozone’s consumer price index at 7:00 p.m., Hungary’s policy rate at 8:00 p.m., remarks by BOE Deputy Governor Breeden at 10:00 p.m., and U.S.housing starts, Canada’s industrial producer prices, Canada’s Consumer Price Index, and U.S. housing starts; at 11:30 PM, remarks by U.S. Richmond Fed President Barkin; at 2:30 AM, remarks by U.S. Atlanta Fed President Bostic; and at 4:00 AM, remarks by New Zealand RBNZ Governor O’Hara.I intend to closely monitor the euro’s movements following the deterioration in the Ifo Business Climate Index.
Author: Keisuke Sakurai
