Should We Keep a Close Eye on the Euro’s Direction, Even as Economic Sentiment Deteriorates?
28.06.2024
- France: Consumer Price Index
- German Employment Statistics
In U.S. currency trading yesterday, the U.S. dollar weakened during U.S. trading hours despite the fact that the number of new U.S. unemployment insurance claims, released yesterday, fell to 233,000 from 238,000 the previous week—a figure that came in below market expectations.The EUR/USD pair rose from 1.0676 to 1.0727, showing a recovery along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 20-period MA is acting as support, while on the daily chart, the pair is consolidating from below the 10-period MA.
Despite the slight decline in the Eurozone’s June business sentiment index—released yesterday—from 96.0 in the previous month to 95.9, the euro rose against the yen.The euro/yen pair rose from 171.393 to 172.166, moving higher along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices are trading above the 10-period MA. Since the daily chart shows a similar price movement, traders should watch for corrective price movements during European trading hours.
Today, at 8:30, Japan’s employment statistics, Tokyo Consumer Price Index, and industrial production will be released; at 15:00, the UK’s real GDP;at 3:45 PM, the French Consumer Price Index and French Producer Price Index; at 4:00 PM, the Swiss KOF Leading Index; at 4:55 PM, the German Employment Statistics; at 7:00 PM, remarks by U.S. Richmond Fed President Barkin; at 9:30 PM, Canadian Real GDP,U.S. Personal Income, U.S. PCE Deflator, U.S. Chicago PMI at 22:45, U.S. University of Michigan Consumer Sentiment Index at 23:00, and remarks by U.S. Federal Reserve Governor Bowman at 25:00.We want to carefully assess the direction of the euro, which has risen despite deteriorating economic sentiment.
Author: Keisuke Sakurai
