Attention is focused on whether the euro, which has risen against the yen, will continue to climb during U.S. trading hours

Attention is focused on whether the euro, which has risen against the yen, will continue to climb during U.S. trading hours

13.08.2024

In the U.S. currency market yesterday, the Canadian dollar weakened 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, recovering from below the 20-period moving average (MA) on the hourly chart to 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.

Among European currencies, the euro rose against the yen. The EUR/JPY pair climbed 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 is acting as a support level, and on the daily chart, the RSI has recovered from 12 to 33. We will be watching closely for signs of a directional move during U.S. trading hours to see if the euro continues to strengthen against the yen.

Today’s economic indicators include the Westpac Consumer Confidence Index (Australia) at 9:30, the NAB Business Sentiment Index (Australia) at 10:30, UK Employment Statistics and Japanese Machine Tool Orders at 15:00, Turkish Housing Sales at 16:00,Turkey’s Current Account Balance, the German ZEW Economic Sentiment Index at 6:00 PM, the U.S. NFIB Small Business Optimism Index at 7:00 PM, the U.S. Producer Price Index at 9:30 PM, and remarks by Bostic, President of the Atlanta Fed, at 2:15 AM. We will be watching for the euro’s potential to extend its gains against the yen during U.S. trading hours.