Should we keep a close eye on the trends in cross-yen pairs, which are generally returning to a stronger yen?
15.02.2024
- Switzerland—Producer Import Prices
- Philadelphia Fed Business Outlook Index
In the U.S. currency market yesterday, the U.S. dollar fell against the yen after the U.S. MBA Mortgage Applications Index, released yesterday, dropped to -2.3% from the previous reading of 3.7%. The USD/JPY pair fell from 150.788 to 150.350.During today’s Asian trading session, the pair hit a new low, falling to 150.152. We will need to keep a close eye on price movements during U.S. trading hours to see if this decline will offset the sharp gains triggered by the U.S. CPI release.
European currencies saw the pound fall sharply against the yen after yesterday’s release of UK January retail sales data showed a year-over-year increase of 4.9%, down from 5.2% the previous month. The GBP/JPY pair fell from 189.833 to 188.771.During today’s Asian trading session, the pair continued to test lower levels, falling to 188.631. We will be watching closely to see whether the pound will continue to weaken against the yen and whether this corrective price movement will persist.
Today’s schedule includes Japan’s GDP at 8:50, South Korea’s trade balance at 8:55, Singapore’s GDP at 9:00, Australia’s employment report at 9:30, Japan’s industrial production at 13:30, the UK’s GDP and industrial production, and Norway’s trade balance at 16:00,at 4:30 p.m., Swiss Producer Import Prices; at 5:00 p.m., Swiss Consumer Confidence Index and remarks by ECB President Lagarde; at 7:00 p.m., Eurozonetrade balance, at 22:30: U.S. retail sales, U.S. Philadelphia Fed Business Outlook Index, and U.S. initial jobless claims; at 23:15: U.S. industrial production; and at 24:00: U.S. business inventories.We will carefully monitor the movements of cross-yen pairs, which are generally trending back toward a stronger yen.
Author: Keisuke Sakurai
