It remains to be seen whether the trend of buying the euro and selling the U.S. dollar will continue.

It remains to be seen whether the trend of buying the euro and selling the U.S. dollar will continue.

27.12.2023

In the U.S. currency market yesterday, the U.S. dollar rose slightly against the yen after the U.S. S&P Case-Shiller Home Price Index for October, released yesterday, showed a year-over-year increase of 4.87%, up from 3.92% the previous month. The USD/JPY pair rose from 142.0844 to 142.644.The pair showed an upward trend relative to the 20-period moving average (MA) on the hourly chart. During today’s Asian trading session, USD/JPY is trading just below the 200-period simple moving average (SMA) on the hourly chart; however, if it breaks above the 200-SMA during European trading hours, the pair could strengthen, so we will be keeping a close eye on the U.S. dollar.

Among European currencies, the euro rose against the pound. The EUR/GBP pair rose from 0.8660 to 0.8686, reaching the +2σ level of the 4-hour Bollinger Bands.On the higher timeframe—the daily chart—the EUR/GBP has firmly broken above the 200-SMA resistance line with a solid candlestick body, so we will be watching closely to see if the euro continues to rise from here.

Today, at 14:00, Japan’s new housing starts; at 16:00, Norway’s retail sales; at 18:00, Switzerland’s investor confidence index; at 20:00, Israel’s industrial production; at 20:30, India’s money supply;at 22:55, U.S. Redbook Large Retailer Sales; at 24:00, U.S. Richmond Fed Manufacturing Index; at 25:00, Russia’sIndustrial Production and Retail Sales at 27:00, a U.S. 5-year Treasury auction at 30:00, and the Bank of Korea’s Manufacturing Business Outlook Index at 27:00. We should keep a close eye on whether the trend of buying the euro and selling the U.S. dollar will continue.