Concerns over further downside potential for the euro against the yen
17.06.2024
- UK Lightmove House Prices
- New York Fed Manufacturing Survey
Last weekend, the three major U.S. stock indices saw mixed performance, with stock prices remaining flat amid rising interest rates and higher crude oil prices.WTI crude oil rose to $78.90. Natural gas, on the other hand, fell 4.2% and is trading in the $2.80 range. The five major precious metals showed mixed performance, with gold standing out as a notable gainer, rising 0.5% from the previous day to around $2,323.
In the foreign exchange market, the euro fell against the yen despite the fact that the seasonally adjusted EU trade balance for April, released on the 14th, increased to €19.4 billion from €17.3 billion the previous month.The EUR/JPY pair fell from 169.795 to 167.507. It broke below the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, it has broken below the 200-period simple moving average (SMA) support line, and on the daily chart, it has touched the -3σ Bollinger Band, so we should be wary of a continued decline during European trading hours.
Today’s economic indicators include UK Rightmove house prices at 8:01, Japan’s machinery orders at 8:50, China’s new home sales prices at 10:30, China’s industrial production and retail sales at 11:00, remarks by ECB President Lagarde at 18:00, Canada’s housing starts at 21:15,21:30: Canada – International Securities Turnover; 21:30: US – New York Fed Manufacturing Index; 22:00: Canada – Existing Home Sales; 24:30: US – 6-Month Treasury Bill Auction; 25:00: US – Remarks by Williams, President of the New York Fed; 26:00: US – Remarks by Harker, President of the Philadelphia Fed.We should remain cautious about the downside potential for the euro, which has fallen against the yen.
Author: Keisuke Sakurai
