Should We Be Wary of the Euro's Weakness as It Falls Against the U.S. Dollar, Which Is Currently Closed?
20.02.2024
- Canada: Consumer Price Index
- U.S. Leading Economic Index
In the U.S. currency market the previous day, volatility in the U.S. dollar declined due to the market being closed for a holiday. The U.S. dollar showed no notable price movements throughout the day, and the USD/JPY pair traded in a narrow range between 149.877 and 150.195; it has been trending higher during today’s Asian trading session.However, since USD/JPY is still trading 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 euro fell against the U.S. dollar 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-period moving average (MA) on the daily chart, the downside is supported by the 200-period simple moving average (SMA) 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,at 19:00, the EU Construction Output; at 22:30, Canada’s Consumer Price Index; at 24:00, the U.S. Leading Economic Index; at 6:00 the following day, South Korea’s Producer Price Index; and at 6:45, New Zealand’s Producer Price Index.Investors should remain cautious regarding the euro’s weakness, as it has fallen against the U.S. dollar while U.S. markets are closed.
Author: Keisuke Sakurai
