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.

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

In yesterday’s U.S. currency trading, 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 session, with the pair touching 141.868. Since the daily chart has temporarily dipped below the 200-day moving average (200SMA), we will closely monitor whether this downward momentum continues.

Among European currencies, the euro fell slightly against the yen ahead of today’s release of Germany’s import price index during European trading hours.The euro/yen pair fell from 157.130 to 156.115, briefly dipping below the 200-period simple moving average (SMA) on the hourly chart. However, the yen’s strength has paused during today’s Asian trading session, and the euro/yen pair is rebounding. Therefore, it will be worth watching whether the Japanese yen weakens and the euro recovers ahead of the Christmas holidays in Europe and the U.S.

Today’s schedule includes UK retail sales, UK Q3 GDP, and the UK current account balance at 16:00 European time; the German import price index at 16:45; the French consumer confidence index and French producer price index at 16:45; Taiwan’s unemployment rate at 17:00; and Mexico’s trade balance at 21:00. During U.S. trading hours, the Canadian real GDP is scheduled for 22:30,U.S. Durable Goods Orders, U.S. Personal Income, and U.S. PCE Deflator at 22:30 U.S. time; and U.S. New Home Sales and the University of Michigan Consumer Sentiment Index at 24:00. We will be watching closely to see if currency strength and weakness become clear before the Christmas holidays in Europe and the U.S.