Will the weakening U.S. dollar rebound? All eyes are on currency strength and weakness.
23.07.2024
- Singapore Consumer Price Index
- European Consumer Confidence Index
In yesterday's U.S. currency trading, the U.S. dollar weakened against the yen. The USD/JPY pair fell from 157.606 to 156.281, reaching the -3σ level of the hourly Bollinger Bands. On the 4-hour chart, the pair is in a downtrend along the 20-period moving average (MA), and on the daily chart, it has fallen sharply to just below the 75-period MA. We will be watching for signs of a potential reversal during European trading hours to see if the U.S. dollar continues to weaken against the yen.
Among European currencies, the pound fell against the yen. Although GBP/JPY saw a larger rebound than other yen crosses following its decline, it still fell from 203.603 to 201.895. The hourly RSI dropped to 26.On the 4-hour chart, the pair temporarily found support at the 200-SMA, but it has since broken below the 200-SMA during today’s Asian session. Since the daily chart has already moved below the 20-MA, we should be cautious of further downside during the U.S. session.
Today’s economic indicators include the Singapore Consumer Price Index at 14:00, Japan’s Machine Tool Orders at 15:00, Turkey’s Consumer Confidence Index at 16:00, Taiwan’s Industrial Production at 17:00, the Turkish Central Bank’s (TCMB) policy rate decision and statement at 20:00, Hungary’s central bank policy rate decision and statement at 21:00, and the EurozoneEU Consumer Confidence Index, US Richmond Fed Manufacturing Index, and US Existing Home Sales, and at 2:00 AM, a US 2-year Treasury auction. We will be closely monitoring currency strength and weakness to see if the weakening US dollar will recover.
Author: Keisuke Sakurai
