Should we be wary of the upside potential of the euro/yen pair, which has continued to hit new highs this month?
27.05.2024
- Japan Economic Sentiment Index
- Turkey Manufacturing Confidence Index
Last weekend, the U.S. dollar became the weakest currency during U.S. trading hours after the April U.S. durable goods orders, released on Friday the 24th, fell to 0.7% from 2.6% the previous month. The EUR/USD pair rose from 1.0805 to 1.0857, breaking above the 20-period moving average on the hourly chart.Although the pair has not yet reached a new high on the 4-hour chart, it is firmly above the 20-period moving average, so we will be watching closely to see if the US dollar softens during European trading hours.
European currencies rose against the yen after Germany’s preliminary first-quarter GDP figures, released last weekend, showed no change from the previous month’s year-on-year decline of 0.2%. The euro/yen pair climbed from 169.603 to 170.495, rebounding from the 75-period moving average on the hourly chart. As the pair continues its gradual upward trend along the 20-period moving average on the 4-hour chart, we will be watching to see if it can reach new highs during U.S. trading hours.
9:05 AM: Remarks by Bank of Japan Governor Ueda (Japan); 11:05 AM: Remarks by Bank of Japan Deputy Governor Uchida (Japan); 2:00 PM: Economic Sentiment Index (Japan); 3:00 PM: Labor Force Survey (Norway); 4:00 PM: Capacity Utilization Rate (Turkey), Manufacturing Confidence Index (Turkey); 5:00 PM:IFO Business Climate Index and Philippines Unemployment Rate, at 17:30 Hong Kong Imports/Exports, at 22:00 Israel Benchmark Interest Rate, and at 24:30 U.S. 3-Month Treasury Bill Auction. Keep an eye on the upside potential of the EUR/JPY pair, which has been hitting new monthly highs.
Author: Keisuke Sakurai
