Will the firm U.S. dollar react to the release of economic indicators during U.S. trading hours, or will it remain unchanged?

Will the firm U.S. dollar react to the release of economic indicators during U.S. trading hours, or will it remain on the sidelines?

27.06.2024

In yesterday’s U.S. currency trading, the U.S. dollar strengthened from European to U.S. trading hours. The USD/JPY pair rose by approximately 120 pips from 159.615 to 160.866, hitting a new high for the year. The USD/JPY has entered an uptrend along the 10-period moving average 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 fell as the euro dropped against the U.S. dollar following yesterday’s release of Germany’s July GfK Consumer Confidence Index, which fell to -21.8 from -20.9 the previous month. The EUR/USD pair fell from 1.0717 to 1.0665, with price action tracking 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, Japan’s domestic and foreign securities investment data will be released at 8:50, followed by New Zealand’s ANZ Business Confidence Index at 10:00. At 18:00, the Eurozone Consumer Confidence Index and Business Climate Survey will be released, along with the Bank of England’s Financial Stability Report. At 18:30, Bank of England Governor Bailey will deliver remarks, and at 20:00, the Central Bank of the Republic of Turkey (TCMB) will announce its policy rate and statement.at 9:00 PM, Mexico’s trade balance; at 9:30 PM, U.S. initial jobless claims, U.S. wholesale inventories, U.S. real GDP, and U.S. durable goods orders; at 11:00 PM, U.S. existing home sales; and at 2:00 AM, a U.S. 7-year Treasury auction. I intend to monitor price levels closely to see if the firm U.S. dollar will shift in response to these U.S. economic indicators.