Should we be wary of the euro's weakness as it falls against the U.S. dollar, which is currently closed for the day?
20.02.2024
- Canada: Consumer Price Index
- U.S. Leading Economic Index
In the U.S. currency market yesterday, volatility in the U.S. dollar declined due to the market being closed for a holiday.The U.S. dollar showed no significant price movements throughout the day, with USD/JPY trading in a narrow range between 149.877 and 150.195. During today’s Asian session, the pair has been trending higher. However, since USD/JPY remains in the low 150s, we should exercise caution in assessing whether the U.S. dollar will continue to rise heading into the weekend.
Among European currencies, the euro fell slightly against the U.S. dollar. The EUR/USD pair dropped from 1.0789 to 1.0761. This decline followed the formation of a triple top on the hourly chart. Although the pair remains below the 20-day moving average on the daily chart, the downside is supported by the 200-period simple moving average on the hourly chart; therefore, we need to carefully assess whether the euro will continue to weaken during European trading hours.
Today's economic indicators include China's Prime Lending Rate at 10:15, Malaysia's trade balance at 13:00, Hong Kong's employment statistics at 17:30, the Eurozone's current account balance at 18:00,South Africa’s employment statistics at 18:30, the Eurozone’s construction output at 19:00, Canada’s Consumer Price Index at 22:30, the U.S. Leading Economic Index at 24:00, South Korea’s Producer Price Index at 6:00 the following day, and New Zealand’s Producer Price Index at 6:45. We should remain cautious regarding the euro’s weakness, which has declined against the U.S. dollar during the U.S. market close.
Author: Keisuke Sakurai
