Investors should keep an eye on the movement of the U.S. dollar following the decline in new home sales in the U.S.

Investors should keep an eye on the movement of the U.S. dollar following the decline in new home sales in the U.S.

24.05.2024

In the U.S. currency market yesterday, the U.S. dollar rose against the yen despite the release of U.S. April new home sales figures, which fell to 634,000 from 693,000 the previous month.USD/JPY rose from 156.521 to 157.187. The 20-period moving average (MA) on the hourly chart provided support at the lower end, driving the price higher. On the 4-hour chart, the price continues to rise along the 10-period MA, and on the daily chart, the RSI stands at 60, indicating room for further movement. Therefore, we should pay close attention to price fluctuations during U.S. trading hours.

European currencies saw the pound fall against the yen after yesterday’s release of the UK’s May Manufacturing PMI, which improved to 51.3 from 49.1 the previous month, while the Services PMI deteriorated to 52.9 from 55.0. GBP/JPY fell from 199.890 to 199.017, pulling back after hitting a new high for the month.On the 4-hour chart, the 20-day moving average is acting as support, and on the daily chart, the RSI is just below 70, so we should be wary of corrective price movements.

Today’s economic indicators include the UK GfK Consumer Confidence Index at 8:01, Japan’s National Consumer Price Index at 8:30, UK Retail Sales, Germany’s Q1 GDP, and Sweden’s Producer Price Index at 15:00, remarks by SNB Governor Jordan at 16:45, and at 18:15, remarks byremarks by German Bundesbank President Nagel, at 21:30 the Canadian Retail Sales and U.S. Durable Goods Orders, at 22:20 remarks by U.S. Federal Reserve Governor Waller, and at 23:00 the U.S. University of Michigan Consumer Sentiment Index. Keep an eye on the movement of the U.S. dollar following the decline in U.S. new home sales.