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 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 has paused during today’s Asian trading session, and the euro/yen pair is rebounding. Therefore, it will be worth watching to see if 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, followed by 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;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.