With European CPI falling, all eyes are on the euro-yen exchange rate

With European CPI falling, all eyes are on the euro-yen pair

02.02.2024

In the U.S. currency market yesterday, 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 guard 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 showing 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, avoiding a break 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, at 9:30 AM, Australia’s Q4 Producer Price Index; at 4:30 PM, Thailand’s Foreign Exchange Reserves; at 4:45 PM, France’sIndustrial Production, France’s Manufacturing Production Index, and France’s Fiscal Balance; at 5:00 PM, Brazil’s Consumer Price Index; at 9:00 PM, Brazil’s Industrial Production; at 9:15 PM, remarks by MPC member Pill; at 10:30 PM, U.S. Employment Statistics; and at midnight, the U.S. University of Michigan Consumer Sentiment Index and U.S. Manufacturing Orders Index.We will be closely monitoring the movement of the euro/yen pair, which rebounded despite the decline in the Eurozone CPI.