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; therefore, we should be on guard for further weakness during U.S. trading hours.

European currencies weakened against the U.S. dollar, even though Germany’s July consumer price index, released yesterday, 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’sCPI and France’s Producer Price Index, at 16:00 Turkey’s trade balance, at 16:55 Germany’s unemployment rate, at 18:00 the Eurozone’s CPI, at 21:15 the U.S. ADP Employment Report, at 21:30 Canada’s GDP,U.S. Chicago Purchasing Managers’ Index at 22:45, U.S. FOMC policy rate decision and statement at 27:00, and U.S. Federal Reserve Chair Powell’s press conference at 27:30. We will carefully assess currency strength and weakness based on these U.S. economic indicator releases.