Will the ECB cause significant shifts in the euro’s strength or weakness? Stay tuned.
18.07.2024
- Europe: ECB Policy Rate and Statement Release
- U.S. Initial Unemployment Insurance Claims
In U.S. currency trading the previous day, the Canadian dollar was the weakest currency from European to U.S. trading hours. The CAD/JPY pair fell from 115.923 to 113.999, touching the -3σ level of the hourly Bollinger Bands.On the 4-hour chart, the pair is being capped by the 200 SMA, and on the daily chart, it has already broken below the 75 MA support line. We will be closely monitoring whether the Canadian dollar continues to weaken and sets a new low for the month.
European currencies rose as the euro strengthened against the U.S. dollar after the final figures for the Eurozone’s June Harmonized Index of Consumer Prices (HICP), released yesterday, showed a year-over-year increase of 2.5%, unchanged from the previous month.The EUR/USD pair rose from 1.0893 to 1.0948. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the RSI reached 70, indicating an overbought condition, and the daily chart shows a similar reading.
Today, at 10:30, Australia’s employment report; at 15:00, the UK’s employment report and Switzerland’s trade balance;at 9:15 p.m., the ECB’s policy rate decision and statement; at 9:30 p.m., U.S. initial jobless claims and the Philadelphia Fed Business Outlook Index; at 9:45 p.m., theECB President Lagarde’s press conference, at 23:00 the U.S. Leading Economic Index, at 23:30 U.S. weekly natural gas inventories, at 26:45 remarks by Logan, President of the Dallas Fed, and at 29:00 U.S. securities investment in the U.S. are scheduled.We will need to pay close attention to price movements following the release of these indicators to see if the strength of the euro will shift significantly at the ECB.
Author: Keisuke Sakurai
