Keep an eye on the euro/yen pair, which is facing resistance ahead of the ECB meeting
17.07.2024
- Canada: International Securities Trading Volume
- European Consumer Price Index
In the U.S. currency market yesterday, the U.S. dollar strengthened immediately after the release of the U.S. June core retail sales index, which was revised upward from a 0.1% decline in the previous month to a 0.4% increase. The USD/JPY pair rose from 157.937 to 158.849.A rebound was observed upon touching the 20-period moving average (MA) on the hourly chart. However, as the pair has fallen below the 20-period MA during today’s Asian session, we should keep a close eye on the dollar’s price action during the European session.
European currencies saw the euro face resistance against the yen after Germany’s July ZEW Economic Sentiment Index, released yesterday, fell sharply to 41.8 from 47.5 the previous month.EUR/JPY rose from 172.030 to 172.917, extending its gains to near the 75-period moving average (MA) on the hourly chart. However, as the 75-period MA continues to cap gains during today’s Asian session, traders should monitor the currency’s strength or weakness during U.S. trading hours.
Today’s schedule includes the Australian Westpac Leading Index at 9:30, the UK Consumer Price Index, UK Retail Price Index, and UK Producer Price Index at 15:00, Indonesia’s 7-day reverse repo rate at 16:20, the Eurozone Consumer Price Index at 18:00, and South Africa’s retail sales at 20:00,U.S. MBA Mortgage Applications, at 9:30 PM: Canada’s International Securities Turnover and U.S. Housing Starts, at 10:00 PM: U.S. Richmond Fed President Barkin’s remarks, at 10:15 PM: U.S. Industrial Production, at 11:30 PM: U.S. Weekly Crude Oil Inventories, and at 3:00 AM: U.S. Beige Book (Federal Reserve District Economic Report).We will cautiously monitor the trend of the euro/yen pair, which is facing resistance on the upside.
Author: Keisuke Sakurai
