All eyes are on whether currency strength and weakness will become clear before the start of the Christmas holidays in Europe and the U.S.
22.12.2023
- U.S. PCE Deflator
- Canada: Real GDP
In the U.S. currency market yesterday, the U.S. dollar fell against the yen after the U.S. third-quarter real GDP, released yesterday, declined to 4.9% from the previous reading of 5.2%. The USD/JPY pair fell from 143.552 to 142.038.The decline continued during today’s Asian trading session, with the pair touching 141.868. Since the price has temporarily dipped below the 200-day SMA on the daily chart, we will closely monitor whether this downward momentum continues.
Among European currencies, the euro—which is awaiting the release of Germany’s import price index later today during European trading hours—fell slightly against the yen. The euro/yen pair dropped from 157.130 to 156.115.It briefly dipped below the 200-period simple moving average (SMA) on the hourly chart. However, the yen’s strengthening trend paused during today’s Asian trading session, and the euro/yen pair has rebounded. Therefore, it will be important to monitor whether the Japanese yen weakens and the euro recovers ahead of the Christmas holidays in Europe and the U.S.
Today, at 16:00 European time, UK retail sales, UK third-quarter GDP, and the UK current account balance will be released, along with Germany’s import price index; at 16:45, France’s consumer confidence index and producer price index will be released; at 17:00, Taiwan’s unemployment rate will be released;at 21:00, Mexico’s trade balance; and during U.S. trading hours, at 22:30, Canada’s real GDP, U.S. durable goods orders, U.S. personal income, and the U.S. PCE deflator; and at 24:00, U.S. new home sales and the University of Michigan Consumer Sentiment Index.We will be watching closely to see if currency strength and weakness become clear before the Christmas holidays in Europe and the U.S.
Author: Keisuke Sakurai
