All eyes are on whether the U.S. dollar, now the world’s strongest currency, will continue to rise.
10.01.2024
- Norway Consumer Price Index
- U.S. Wholesale Inventories
In the U.S. currency market the previous day, the U.S. dollar became the weakest currency during U.S. trading hours, despite remarks by Fed Vice Chair Bar that “the key issue is not whether to raise rates further this year, but how long to maintain a restrictive interest rate level.”The EUR/USD pair fell from 1.0966 to 1.091, trading below the 20-period moving average on the 4-hour chart. We will be watching closely to see if the U.S. dollar continues to come under pressure heading into U.S. trading hours.
European currencies saw the euro trade sideways against the yen after Villeroy de Galhau, Governor of the Bank of France, stated, “If the 2% inflation target becomes firmly established, rate cuts are possible. The timing of ECB rate cuts will depend on the data.”The euro/yen pair saw little movement, trading between 157.191 and 157.983, and the yen has weakened to 158.414 during today’s Asian trading session. Other yen crosses are also rising, and given the euro’s particularly sharp gains, traders should remain cautious ahead of economic data releases during European trading hours.
Today’s economic indicators include German industrial production, Turkish employment statistics, Turkish industrial production, and the Norwegian Consumer Price Index at 16:00; Hungarian industrial production at 16:30; the French current account balance and trade balance at 16:45; and at 21:00, the U.S.MBA Mortgage Applications Index, at 24:00: U.S. Wholesale Inventories, at 24:30: U.S. Weekly Crude Oil Inventories, at 27:00: U.S. 10-Year Treasury Auction, and at 29:15: remarks by U.S. Federal Reserve Bank of New York President Williams.I’d like to watch the situation carefully to see if the U.S. dollar—now the strongest currency—will continue to gain ground.
Author: Keisuke Sakurai
