All Eyes on the Euro as It Rises on the Back of a Recovery in German Industrial Production
08.08.2024
- U.S. Weekly Natural Gas Inventories
- India and China Central Bank Policy Rates
In U.S. currency trading the previous day, the Canadian dollar rose against the yen. The CAD/JPY pair rose from 104.547 to 107.582, recovering to just below the 200-period EMA on the hourly chart.On the 4-hour chart, the RSI rebounded from 12 to 55. On the daily chart, the price has recovered from the -3σ to the -2σ level of the Bollinger Bands. We will be watching price movements during U.S. trading hours to see if the Canadian dollar’s momentum continues.
European currencies saw the euro rise slightly against the yen after Germany’s June industrial production figures, released yesterday, showed an improvement year-over-year, with the decline narrowing from -6.7% in the previous month to -4.1%.The euro rose against the U.S. dollar from 1.0905 to 1.0936, moving above the 20-period moving average (MA) on the hourly chart. Since the 20-period MA is acting as support on the 4-hour chart and the price is rising, we will be watching closely to see if the euro continues to climb during European trading hours.
Today’s schedule includes the UK RICS House Price Index at 8:01, Japan’s Balance of Payments and Foreign/Domestic Securities Investment at 8:50, remarks by RBA Governor Block at 11:40, and India’sCentral Bank Policy Rate, at 14:00 Japan’s Economic Watchers Survey, at 20:00 South Africa’s Manufacturing Production, at 21:30 U.S. Initial Jobless Claims, at 23:00 U.S. Wholesale Inventories,11:30 p.m. U.S. weekly natural gas inventories, 2:00 a.m. U.S. 30-year Treasury auction, and 4:00 a.m. U.S. remarks by Richmond Fed President Barkin are scheduled. We want to carefully assess the direction of the euro, which has risen on the back of a recovery in German industrial production.
Author: Keisuke Sakurai
