Market participants may be keeping a close eye on currency strength and weakness following the release of economic indicators in U.S. time.

Market participants may be keeping a close eye on currency strength and weakness following the release of economic indicators in U.S. time.

31.07.2024

In U.S. currency trading the previous day, the Canadian dollar weakened against the yen. The CAD/JPY pair fell from 112.096 to 110.189.The price fell to the -2σ level of the hourly Bollinger Bands. On the 4-hour chart, the RSI has dropped to 30, and on the daily chart, the price has already broken below the 200-SMA support line, so we should be on guard for further weakness during U.S. trading hours.

European currencies saw the euro weaken against the U.S. dollar, despite yesterday’s release of Germany’s July consumer price index, which rose 0.1 percentage points year-over-year to 2.3% from the previous month’s 2.2%.The EUR/USD pair fell from 1.0835 to 1.0797. It faced resistance at the 75-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair has pulled back from the 20-period MA, and on the daily chart, it is seeking direction—whether to rebound or extend its decline—just below the 200-period simple moving average (SMA).

Today’s schedule includes Japan’s Industrial Production at 8:50, New Zealand’s ANZ Business Confidence Index at 10:00, Australia’s Q2 Consumer Price Index and Retail Sales at 10:30, Germany’s Import Price Index at 15:00, and France’sConsumer Price Index and France’s Producer Price Index at 10:30; Turkey’s Trade Balance at 16:00; Germany’s Unemployment Rate at 16:55; the Eurozone’s Consumer Price Index at 18:00; the U.S. ADP Employment Report at 21:15; Canada’s GDP at 21:30;at 10:45 PM: U.S. Chicago Purchasing Managers’ Index; at 3:00 AM: U.S. FOMC policy rate decision and statement; and at 3:30 AM: U.S. Federal Reserve Chair Powell’s press conference. We will carefully assess currency strength and weakness based on these U.S. economic indicator releases.