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 became the weakest currency during U.S. trading hours, despite the fact that the U.S. Federal Reserve Bank of Philadelphia’s February Business Outlook Index, released yesterday, improved to +5.2 from -10.6 the previous month.The euro rose against the dollar from 1.0723 to 1.0784, breaking above the 200-period simple moving average (SMA) on the hourly chart with a real body candle. We need to carefully assess the direction of the market to determine whether the euro will continue to rise and the dollar will weaken.
The euro fluctuated against the yen after yesterday’s release of the EU’s December trade balance, which showed a seasonally adjusted decline from the previous month’s 14.8 billion euros to 13.0 billion euros. 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 rising to 161.784. We will be closely monitoring whether the euro continues to strengthen against the yen heading into the U.S. trading session this weekend.
Today’s schedule includes Japan’s domestic and foreign equity investment data at 8:50, Japan’s Tertiary Industry Activity Index at 13:30, UK retail sales at 16:00, Germany’sWholesale Price Index, Sweden’s Unemployment Rate, at 16:45 France’s Consumer Price Index, at 20:30 India’s Foreign Exchange Reserves, at 22:00 U.S. remarks by Barkin, President of the Richmond Fed, at 22:30 U.S.Housing Starts, Canada: Wholesale Sales, U.S.: Building Permits, U.S.: Producer Price Index, 11:10 PM: U.S. – Remarks by Bar, Vice Chair of the Federal Reserve, and 12:00 AM: U.S. – University of Michigan Consumer Sentiment Index. We will be watching for upside potential in the euro/yen pair.
Author: Keisuke Sakurai
