Market Participants May Wait to See How Far the Pound Can Rise Against the Yen
17.05.2024
- European Consumer Price Index
- Switzerland: Industrial Production
In the U.S. currency market the previous day, the U.S. dollar strengthened during U.S. trading hours after the Boston and Atlanta Fed banks stated, “While we are grateful for the slowdown in inflation in April, we remain vigilant,” suggesting that interest rate cuts would come toward the end of the year rather than in the immediate future.The EUR/USD pair fell from 1.0895 to 1.0854, breaking below the 20-period moving average on the hourly chart. On the 4-hour chart, the price is moving back toward the centerline from the +2σ level of the Bollinger Bands, so we will be watching for the potential for the U.S. dollar to rise during European trading hours.
Among European currencies, the pound rose against the yen. The GBP/JPY pair rose from 195.038 to 196.912, breaking above the 20-period moving average (MA) on the hourly chart from below.On the 4-hour chart, the 75-period moving average is acting as a support line, triggering a rebound, and on the daily chart, the trend along the 10-period moving average continues. Therefore, we need to carefully assess whether the pound will strengthen further during U.S. trading hours.
Today’s schedule includes South Korea’s employment statistics at 8:00, China’s industrial production at 10:30, China’s retail sales at 11:00, Malaysia’s current account balance at 13:00,2:30 p.m. French employment figures, 3:30 p.m. Swiss industrial production, 5:00 p.m. remarks by a member of the Bank of England’s MPC, 5:30 p.m. Hong Kong real GDP, 6:00 p.m. EurozoneConsumer Price Index, at 21:30 Canadian government bond trading volume, at 23:00 U.S. Leading Economic Index, at 23:15 remarks by U.S. Federal Reserve Governor Waller, and at 25:15 remarks by U.S. San Francisco Fed President Daily.I intend to carefully monitor the upside potential of the pound, which has risen against the yen.
Author: Keisuke Sakurai
