With European CPI Down, All Eyes on Euro/Yen Movements as It Rebounds
02.02.2024
- U.S. Employment Report
- Brazil's Consumer Price Index
In yesterday’s U.S. currency trading, following the FOMC meeting, the U.S. dollar became the weakest currency during U.S. trading hours. The USD/JPY pair fell from 147.115 to 145.893, hitting a new low for the week.U.S. employment data is scheduled to be released today during U.S. trading hours. With the unemployment rate expected to rise by 0.1 percentage points to 3.8%, we should be on the lookout for volatility, as the dollar could see significant movement depending on the results.
European currencies saw the euro rise against the yen, despite yesterday’s release of France’s January consumer price index, which showed a year-over-year decline from 2.9% the previous month to 2.8%, with the core year-over-year rate also falling.The euro/yen pair rose from 158.075 to 159.262, managing to avoid breaking below the 75-day moving average on the daily chart. However, since the daily RSI has been trending downward from just below 70, traders should be cautious of a potential decline following a correction.
Today’s schedule includes Australia’s fourth-quarter Producer Price Index at 9:30, Thailand’s foreign exchange reserves at 16:30, France’s industrial production, manufacturing production index, and fiscal balance at 16:45, Brazil’s Consumer Price Index at 17:00,at 9:00 p.m., Brazil’s Industrial Production; at 9:15 p.m., remarks by MPC member Pill of the UK; at 10:30 p.m., U.S. Employment Report; at midnight, the University of Michigan Consumer Sentiment Index and U.S. Manufacturing Orders Index.I intend to closely monitor the movement of the euro/yen pair, which rebounded despite the decline in the Eurozone CPI.
Author: Keisuke Sakurai
