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 yesterday’s U.S. currency trading, 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, showing an upward trend relative to the 20-period moving average (MA) on the hourly chart. During today’s Asian session, the USD/JPY is trading just below the 200-period simple moving average (SMA) on the hourly chart. However, if it breaks above the 200-period SMA during the European session, the pair could strengthen, so we will be keeping a close eye on the US dollar.

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

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, the U.S. Redbook large-scale retail sales;at 12:00 AM, the U.S. Richmond Fed Manufacturing Index; at 1:00 AM, Russia’s Industrial Production and Retail Sales; at 3:00 AM, the U.S. 5-Year Treasury Auction; and at 4:00 AM, South Korea’s Bank of Korea Manufacturing Business Outlook Index. We should watch to see if the trend of buying the euro and selling the U.S. dollar continues.