With Germany's May CPI rebounding, should we keep an eye on the direction of the euro?
30.05.2024
- U.S. Initial Jobless Claims
- Canada's Current Account Balance
In the previous day’s U.S. trading session, the Canadian dollar was the weakest currency. Although it typically moves in tandem with the U.S. dollar, it fell in inverse proportion to the U.S. dollar, which was the strongest currency. The CAD/JPY pair fell from 115.282 to 114.743.On the 4-hour chart, the trend—which had been supported by the 20-day moving average—has broken down, leading to a decline. However, on the daily chart, the pair is still trading above the 10-day moving average, so we will be watching closely to see if the Canadian dollar recovers during U.S. trading hours.
Despite the preliminary May consumer price index for Germany, released yesterday, showing a 0.2-point year-over-year increase from the previous month’s 2.2% to 2.4%, the euro fell against the yen.The euro/yen pair fell from this month’s high of 170.797 to 169.956, dropping to the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the pair has broken below the 20-period moving average (MA) that had been providing support, and on the daily chart, the RSI has begun to pull back from just below the 70 level.
Today’s economic indicators include New Zealand housing construction permits at 7:45, Japan’s foreign and domestic securities investment at 8:50, Australia’s housing construction permits at 10:30,1:00 PM: Thailand Manufacturing Production Index, 4:00 PM: Switzerland Q1 GDP, 6:00 PM: Eurozone Employment Statistics, 9:30 PM: U.S. Initial Jobless Claims, Canada Current Account,US Real GDP, US Wholesale Inventories, US PCE Deflator, 11:00 PM US Existing Home Sales, 12:00 AM US Weekly Crude Oil Inventories, UK BOE Deputy Governor Breeden’s remarks, and 1:05 AM US NY Fed President Williams’ remarks. With Germany’s May CPI rebounding, we intend to carefully monitor the direction of the euro.
Author: Keisuke Sakurai
