Will the Euro, Which Has Gained Value, Continue Its Uptrend? Watch for Developments
11.01.2024
- U.S. Consumer Price Index
- Mexico: Industrial Production
In the U.S. currency market the previous day, the U.S. dollar rose against the yen after John Williams, President of the New York Federal Reserve Bank, stated, “We are still halfway to reaching our 2% inflation target. It is too early to begin cutting interest rates.”The USD/JPY pair rose from 144.315 to 145.815, breaking into the key 145-yen level and holding steady there. As the pair continues to hold above 145 yen during today’s Asian trading session, we should remain vigilant for any potential shifts following today’s U.S. CPI release.
European currencies saw the euro strengthen against the U.S. dollar, partly due to the improvement in France’s November industrial production, which was released yesterday and rose to +0.5% from -0.3% the previous month.The EUR/USD pair rose from 1.0922 to 1.0984. The price broke above the 200-period simple moving average (SMA) on the hourly chart with a real body candle. On the higher-time-frame daily chart, the price has diverged upward from the 20-period moving average (MA) and is trending higher, so we should watch for further upside potential during European trading hours.
Today’s economic indicators include the Japan Economic Sentiment Index at 14:00, the ECB Monthly Report at 18:00, South Africa’s Manufacturing Output at 20:00, Mexico’s Industrial Production at 21:00,at 10:30 p.m., the U.S. Consumer Price Index and Initial Jobless Claims; at 12:30 a.m., U.S. Weekly Natural Gas Inventories; at 3:00 a.m., the U.S. 30-Year Treasury Auction; and at 4:00 a.m., the U.S. Budget Balance.We’ll need to carefully assess whether the euro, which has been gaining ground, will continue its upward trend.
Author: Keisuke Sakurai
