Market Watchers to Keep an Eye on the Direction of the U.S. Dollar Following a Decline in U.S. Durable Goods Orders
26.07.2024
- Japan Economic Sentiment Index
- U.S. PCE Deflator
In the U.S. currency market yesterday, the U.S. dollar fell against the euro after the U.S. June durable goods orders, released yesterday, were sharply revised downward from the previous month’s 0.1% to -6.6%.The EUR/USD pair rose from 1.0827 to 1.0869. It climbed along the 20-period moving average (MA) on the hourly chart and recovered to just below the 200-period exponential moving average (EMA). On the 4-hour chart, the 200-period EMA is acting as support, and on the daily chart, the pair is rebounding from the 20-period MA.
Among European currencies, the pound weakened against the U.S. dollar. The GBP/USD pair fell from 1.2913 to 1.2845. It declined as it encountered resistance at the 20-period moving average on the hourly chart.On the 4-hour chart, the pair has touched the -3σ Bollinger Band, and on the daily chart, the price has broken below the 20-day moving average support line with a real body candle. We will need to monitor price action during European trading hours to see if the pound continues to weaken against the U.S. dollar.
Today’s economic indicators include the Japan/Tokyo Consumer Price Index at 8:30, Australian Retail Sales at 10:30, Singapore Industrial Production at 14:00, the Japan Economic Sentiment Index at 14:00, the France Consumer Confidence Index at 15:45, and at 19:30, Russia’skey interest rates, at 21:00: Mexico’s trade balance, at 21:30: U.S. personal income, U.S. PCE deflator, and U.S. core PCE deflator, and at 23:00: the U.S. University of Michigan Consumer Sentiment Index.We will be closely monitoring the direction of the U.S. dollar, which fell following the deterioration in U.S. durable goods orders.
Author: Keisuke Sakurai
