With U.S. markets closed, investors should be on the lookout for sudden spikes in volatility

With U.S. markets closed, investors should be on the lookout for sudden spikes in volatility

04.07.2024

In the U.S. currency market yesterday, the U.S. dollar fell against the yen after the number of new unemployment insurance claims rose from 1.839 million the previous week to 1.858 million, and the U.S. June ADP employment report, released on the same day, showed a decline from 152,000 to 150,000. The USD/JPY pair fell from 161.950 to 160.759.The 75-period moving average on the hourly chart acted as support, and the pair subsequently rebounded. Since it has not managed to surpass yesterday’s high during today’s Asian session, we should remain cautious regarding price movements during the U.S. session.

European currencies rose against the yen as the Eurozone’s May Producer Price Index (PPI), released yesterday, improved year-over-year from -5.7% in the previous month to -4.2%. The euro/yen pair rose from 173.315 to 174.514. The price moved along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the uptrend along the 10-period MA continues.

Today’s economic indicators include Australia’s trade balance at 10:30, Switzerland’s employment report at 14:45, Germany’s new manufacturing orders at 15:00, Switzerland’s consumer price index at 15:30, the UK’s construction PMI at 17:30, Brazil’s trade balance at 27:00, and the release of the minutes from the ECB Governing Council meeting at 20:30.Following yesterday’s shortened trading session, U.S. markets will be closed today. Please remain vigilant for sudden spikes in volatility.