Should we be wary of further downside potential for the euro, now that it has become the weakest currency?
11.06.2024
- South Korea's Current Account Balance
- UK and ILO Unemployment Rates
In yesterday's U.S. currency trading, the U.S. dollar rose against the yen. The USD/JPY pair climbed from 156.573 to 157.191. The rise was supported by the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is trading above the 10-period MA, and similar price action is observed on the daily chart. Furthermore, since the daily RSI is testing the upside around the 56 level, we will be watching for further gains in the U.S. dollar during European trading hours.
European currencies weakened as the euro lost ground following the rise of right-wing parties in the European Parliament elections. The euro/dollar pair gapped down, falling from 1.0799 to 1.0732. It has now settled below the 10-period moving average on the hourly chart.On the 4-hour chart, the pair has broken well below the 200-day moving average (SMA), which had been viewed as a key support level, and it has similarly fallen below the 200-day SMA on the daily chart. We need to carefully assess whether the euro will continue to weaken against the U.S. dollar.
Today’s economic indicators include South Korea’s current account balance at 8:00, Japan’s money supply at 8:50, the Philippines’ trade balance at 10:00, Australia’s NAB Business Confidence at 10:30, the UK’s ILO unemployment rate and employment figures at 15:00,at 7:00 PM: US NFIB Business Optimism Index; at 8:00 PM: South Africa Manufacturing Output; at 9:00 PM: Mexico Industrial Production; at 9:30 PM: Canada Housing Starts; and at 2:00 AM: US 10-Year Treasury Auction. We will carefully monitor the downside potential of the euro, which has become the weakest currency.
Author: Keisuke Sakurai
