All eyes are on whether the U.S. dollar, now the weakest currency, will react to comments from key officials
28.05.2024
- Increase in raw material prices
- UK CBI Retail Sales
In the previous day's currency markets, the U.S. dollar was the weakest currency.While other yen crosses rose, USD/JPY saw quiet price action, trading in a narrow range between 156.659 and 156.975. On the hourly chart, prices are fluctuating around the 75-period moving average (MA), and on the 4-hour chart, a price drop is observed just below the 20-period MA. Meanwhile, on the daily chart, prices continue to trade above the 10-period MA. We will be watching closely to see if the US dollar loses momentum during US trading hours.
European currencies saw the euro rise slightly against the U.S. dollar after Germany’s May IFO Business Climate Index, released yesterday, rose to 89.3 from 89.4 the previous month.The EUR/USD pair rose from 1.0839 to 1.0867. Prices were pushed higher while finding support at the 75-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is rising steadily with support from the 20-period MA, and on the daily chart, the 200-period simple moving average (SMA) is acting as a support line, so we will be watching price movements closely as we approach the end of the month.
Today’s economic indicators include: Japan’s Corporate Service Price Index at 8:50, Australia’s Retail Sales at 10:30, Norway’s Retail Sales at 15:00, Sweden’s Trade Balance at 15:00, France’s Unemployment Rate and the UK’s CBI Retail Sales at 19:00, and Canada’s Raw Material Prices at 21:30,22:00: U.S. S&P/Case-Shiller Home Price Index; 23:00: U.S. Consumer Confidence Index; 23:30: U.S. Dallas Fed Manufacturing Activity Index; 24:30: U.S. 2-Year Treasury Auction; UK: Remarks by MPC Member Haskell; 26:05: Remarks by U.S. Federal Reserve Governor Cook.We will watch carefully to see if the U.S. dollar, which has become the weakest currency, will react to these key figures’ remarks.
Author: Keisuke Sakurai
