Should we keep an eye on the upside potential for the euro-yen pair?
16.02.2024
- France: Consumer Price Index
- U.S. Housing Starts
In the U.S. currency market yesterday, the U.S. dollar was the weakest currency during U.S. trading hours, despite the February Philadelphia Fed Business Outlook Index—released yesterday—improving to +5.2 from -10.6 the previous month.The EUR/USD pair rose from 1.0723 to 1.0784, breaking above the 200-period simple moving average (SMA) on the hourly chart. We will carefully monitor the market to determine whether the euro will continue to rise and the U.S. dollar will weaken.
European currencies saw the euro fluctuate against the yen after yesterday’s release of the EU’s December trade balance, which fell to €13 billion on a seasonally adjusted basis from €14.8 billion the previous month. The euro/yen pair rose from 160.925 to 161.636. The upward trend has continued during today’s Asian trading session, with the pair climbing to 161.784.We will be watching closely to see if the euro continues to strengthen against the yen heading into the U.S. session this weekend.
Today’s schedule includes: Japan’s domestic and foreign equity investment at 8:50, Japan’s Tertiary Industry Activity Index at 13:30, UK retail sales at 16:00, Germany’s wholesale price index at 16:00, Sweden’s unemployment rate at 16:00, France’s consumer price index at 16:45, India’s foreign exchange reserves at 20:30, and at 22:00, U.S. Federal Reserve Governor Barkin:Remarks by Richmond Fed President Barkin, at 10:30 PM: US Housing Starts, Canada Wholesale Sales, US Building Permits, US Producer Price Index, at 11:10 PM: Remarks by Fed Vice Chair Bar, and at 12:00 AM: US University of Michigan Consumer Sentiment Index. We will be watching for upside potential in the EUR/JPY pair.
Author: Keisuke Sakurai
