Should we be wary of further downside potential for the euro against the U.S. dollar?
28.02.2024
- European Consumer Confidence Index
- Turkey: Trade Balance
In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen after the January U.S. durable goods orders report, released yesterday, showed a deterioration in the core month-over-month figure from the previous reading of 0.5% to -0.3%. The USD/JPY pair fell from 150.708 to 150.072.A slight rebound has been observed during today’s Asian trading session. We will assess whether the US dollar will continue to decline against the yen by monitoring today’s economic data releases.
European currencies saw the euro fall slightly against the U.S. dollar, despite the German GfK Consumer Confidence Index for March—released yesterday—improving to -29.0 from -29.7 the previous month. The EUR/USD pair fell from 1.0865 to 1.0832. During today’s Asian trading session, it broke below the 75-period moving average on the hourly chart and is testing lower levels. We will closely monitor whether the euro shows signs of recovery during U.S. trading hours.
Today’s schedule includes the Australian Consumer Price Index at 9:30, the RBNZ policy rate and statement at 10:00, the Japanese Economic Sentiment Index at 14:00, the Turkish Trade Balance at 16:00, the Eurozone Consumer Confidence Index and Economic Sentiment at 19:00, the U.S. MBA Mortgage Applications Index at 21:00, and the Canadian Current Account at 22:30,U.S. Real GDP and U.S. Wholesale Inventories, U.S. Weekly Crude Oil Inventories at 24:30, Russian Industrial Production at 25:00, and remarks by U.S. Atlanta Fed President Bostic at 26:00. We will closely monitor the downside potential for the euro, which is currently falling against the U.S. dollar.
Author: Keisuke Sakurai
