Will the firm U.S. dollar react to the release of economic indicators during U.S. trading hours, or will the market remain on the sidelines?
27.06.2024
- U.S. Initial Jobless Claims Index
- U.S. Real GDP
In the previous day’s U.S. currency trading, the U.S. dollar strengthened from European trading hours through U.S. trading hours. The USD/JPY pair rose by approximately 120 pips from 159.615 to 160.866, setting a new high for the year. The USD/JPY pair entered an uptrend along the 10-period moving average (MA) on the hourly chart, and similar price action was observed on the 4-hour chart.On the daily chart, the RSI is just below 70, so traders should watch for corrective price movements during European trading hours.
European currencies saw the euro fall against the U.S. dollar after Germany’s July GfK Consumer Confidence Index, released yesterday, dropped to -21.8 from -20.9 the previous month. The euro/dollar pair fell from 1.0717 to 1.0665, with the price moving along the 20-period moving average (MA) on the hourly chart.Similarly, on the 4-hour chart, prices have fallen below the 20-period moving average, and on the daily chart, the 10-period moving average is acting as a resistance level.
Today’s schedule includes Japan’s domestic and foreign securities investment data at 8:50, New Zealand’s ANZ Business Confidence Index at 10:00, the Eurozone’s Consumer Confidence Index at 18:00, EurozoneEconomic Sentiment, and the UK BOE Financial Stability Report at 8:50; remarks by UK BOE Governor Bailey at 18:30; the Turkish TCMB policy rate and statement at 20:00; Mexico’s trade balance at 21:00;21:30: U.S. Initial Jobless Claims, U.S. Wholesale Inventories, U.S. Real GDP, U.S. Durable Goods Orders; 23:00: U.S. Existing Home Sales; and 26:00: U.S. 7-Year Treasury Auction.I’d like to wait and see if the firm U.S. dollar will shift in response to the economic data releases during U.S. trading hours.
Author: Keisuke Sakurai
