Attention is turning to the upside potential of the U.S. dollar, which has risen against both the yen and the euro
26.02.2024
- Japan Corporate Services Price Index
- U.S. New Home Sales
Last weekend, the U.S. dollar saw a seesaw movement against the yen. The USD/JPY pair rose to 150.769 before falling back to 150.293.Price action centered around the 20-period moving average on the hourly chart. While the weekly chart has shown four consecutive bullish candles, no divergence has occurred on the weekly RSI. Therefore, it will be worth watching whether the US dollar experiences a corrective decline against the yen at the start of the week.
Despite the German IFO Business Climate Index for February, released on the 23rd, rising slightly from 85.2 in the previous month to 85.5, the euro closed with a bullish candle featuring an upper shadow against the U.S. dollar. The EUR/USD pair traded in a narrow range around the 20-period moving average (MA), briefly attempting to rise from the 75-period MA before falling back.A pullback was observed after the pair touched the 200-period SMA on the 4-hour chart. We will closely monitor the direction to see if the euro will continue to pull back against the US dollar.
Today’s schedule includes the Japan Corporate Services Price Index at 8:50, Singapore’s Industrial Production Index at 14:00, remarks by BOE Deputy Governor Breeden at 18:00, remarks by MPC Member Pill at 20:00, and Israel’s benchmark interest rate at 23:00,U.S. New Home Sales at 10:30 PM, the U.S. Dallas Fed Manufacturing Activity Index at 12:30 AM, the U.S. 2-Year Treasury Auction at 1:30 AM, and the U.S. 5-Year Treasury Auction at 3:00 AM. We will be watching for further upside potential in the U.S. dollar, which has risen against both the yen and the euro.
Author: Keisuke Sakurai
