Will the euro, which has been gaining ground, continue its upward trend?
11.01.2024
- U.S. Consumer Price Index
- Mexico: Industrial Production
In the previous day’s U.S. currency trading, 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 through the key 145-yen level and holding steady there. As the USD/JPY remains in the 145-yen range during today’s Asian trading session, we should remain vigilant for any potential shifts following today’s U.S. CPI release.
European currencies strengthened against the U.S. dollar, partly due to the improvement in France’s November industrial production, which rose to +0.5% from -0.3% the previous month, as announced yesterday. The EUR/USD pair rose from 1.0922 to 1.0984 and broke above the 200-period simple moving average (SMA) on the hourly chart.On the higher timeframe daily chart, the price has diverged upward from the 20-day moving average and is trending higher, so we should watch for further upside potential during European trading hours.
Today's economic indicators include Japan's Economic Sentiment Index at 2:00 PM and the ECB Monthly Report at 6:00 PM,ECB Monthly Report at 18:00, South Africa Manufacturing Production at 20:00, Mexico Industrial Production at 21:00, U.S. Consumer Price Index and Initial Jobless Claims at 22:30, U.S. Weekly Natural Gas Inventories at 24:30, U.S. 30-Year Treasury Auction at 27:00, and U.S. Budget Balance at 28:00.We will carefully assess whether the euro, which has gained ground, will continue its upward trend.
Author: Keisuke Sakurai
