Attention Turns 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 U.S. 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 to 85.5 from 85.2 the previous month, the euro formed a bullish candle with an upper shadow against the U.S. dollar.The EUR/USD pair traded in a narrow range around the 20-period moving average (MA) on the hourly chart; after briefly attempting to rise from the 75-period MA, it reversed lower. A pullback was observed after the pair touched the 200-period simple moving average (SMA) on the 4-hour chart. We will closely monitor the direction of the euro against the U.S. dollar to see if it continues to pull back.
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,at 11:00 p.m., Israel’s benchmark interest rate and U.S. new home sales; at 12:30 a.m., the U.S. Dallas Fed Manufacturing Activity Index; at 1:30 a.m., a U.S. 2-year Treasury auction; and at 3:00 a.m., a U.S. 5-year Treasury auction.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
