Caution Advised Amid Volatility in the U.S. Dollar Caused by Comments from Key Figures
16.04.2024
- Germany's ZEW Economic Sentiment Index
- Europe: Trade Balance
In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen after the release of U.S. March retail sales data showed a rise from 0.6% in the previous month to 0.7%, with the core index (excluding automobiles) rising from 0.3% to 1.1%. The USD/JPY pair rose from 152.949 to 154.446, moving upward along the 10-period moving average on the 4-hour chart.On the daily chart, the RSI has exceeded 70 and stands at 78, so we should be wary of volatility caused by comments from key figures during U.S. trading hours.
European currencies rose against the yen as the euro gained ground following yesterday’s release of February’s Eurozone industrial production data, which showed a year-on-year decline narrowing to -6.4% from -6.7% the previous month. The euro/yen pair climbed from 162.680 to 164.440, breaking above the 20-period moving average on the hourly chart. Although the pair briefly dipped below the 200-period moving average on the 4-hour chart, it has since recovered and broken back above it; therefore, we will be watching for further upside momentum during European trading hours.
Today’s schedule includes: China’s new home sales at 10:30, China’s retail sales and industrial production at 11:00, Indonesia’s trade balance at 13:00, Germany’s wholesale price index and the UK’s employment statistics at 15:00, Germany’s ZEW Economic Sentiment Index and the EU’s trade balance at 18:00,at 7:00 PM: Israel’s real GDP; at 9:30 PM: Canada’s Consumer Price Index and U.S. housing starts; at 10:15 PM: U.S. industrial production; at 11:30 PM: remarks by Nagel, President of the German Bundesbank; at 1:30 AM: remarks by Williams,Remarks by NY Fed President Williams, 2:00 AM UK: Remarks by BOE Governor Bailey, 2:15 AM US: Remarks by Fed Chair Powell. Please be fully aware of potential volatility in the US dollar caused by these key figures’ remarks.
Author: Keisuke Sakurai
