Attention Turns to the Euro’s Upside Potential During U.S. Trading Hours After Gaining Against the Yen
13.08.2024
- Germany's ZEW Economic Sentiment Index
- U.S. NFIB Small Business Optimism Index
In the U.S. currency market yesterday, the Canadian dollar weakened slightly against the Japanese yen following the release of Canada’s June housing starts data, which showed a deterioration from the previous month’s 12.2% decline to a 13.9% decline. The USD/CAD pair rose from 1.3716 to 1.3747.The pair has recovered from below the 20-period moving average (MA) on the hourly chart to a level above it. On the 4-hour chart, the 200-period simple moving average (SMA) is acting as support, and on the daily chart, a rebound from the midpoint of the RSI is visible; therefore, we will be watching price movements during U.S. trading hours closely.
Among European currencies, the euro rose against the yen. The euro/yen pair rose from 160.070 to 161.948. A clear trend was observed along the +2σ line of the hourly Bollinger Bands.On the 4-hour chart, the 20-period moving average (MA) is acting as a support level, and on the daily chart, the RSI has recovered from 12 to 33. We will be closely monitoring the direction of the market during U.S. trading hours to see if the euro continues to strengthen against the yen.
Today’s economic indicators include the Australian Westpac Consumer Confidence Index at 9:30, the Australian NAB Business Sentiment Index at 10:30, the UK Employment Report and Japan’s Machine Tool Orders at 15:00, Turkey’s Housing Sales at 16:00,Turkey’s Current Account Balance, at 18:00 the German ZEW Economic Sentiment Index, at 19:00 the U.S. NFIB Small Business Optimism Index, at 21:30 the U.S. Producer Price Index, and at 26:15 remarks by Bostic, President of the Atlanta Fed.We will be watching to see if the euro, which has risen against the yen, can extend its gains during U.S. trading hours.
Author: Keisuke Sakurai
