Will the market wait and see how the euro performs despite the deterioration in Germany's ZEW economic sentiment index?
14.08.2024
- U.S. Consumer Price Index
- France: Consumer Price Index
In the U.S. currency market yesterday, the U.S. dollar became the weakest currency during U.S. trading hours after the U.S. July Producer Price Index, released yesterday, showed a year-over-year decline of approximately 0.4 percentage points from the previous month’s 2.6% to 2.2%. The USD/JPY pair fell from 147.955 to 146.564.On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price is stalling at the 38.2% Fibonacci retracement level, which corresponds to the recent high.
Despite the German ZEW Economic Sentiment Index for August, released yesterday, falling sharply to 19.2 from 41.8 the previous month—well below the market forecast of 34.2—the euro held firm against the yen.The euro/yen pair rose from 160.616 to 161.815. It has gently moved above the centerline of the hourly Bollinger Bands. On the daily chart, it is currently attempting to break through the 10-day moving average (10MA), which is acting as resistance.
Today’s schedule includes South Korea’s employment statistics at 8:00, the RBNZ policy rate and statement at 11:00, RBNZ Governor O’Hara’s press conference at 12:00, Sweden’s CPI, the UK’s CPI, UK retail sales, and the UK’s PPI at 15:00, and India’sWholesale Price Index, at 15:45 the French CPI, at 18:00 the Eurozone Real GDP, at 20:00 the U.S. MBA Mortgage Applications Index, at 21:30 the U.S. CPI, and at 23:30 the U.S. Weekly Crude Oil Inventories. I intend to carefully monitor the euro’s movements, which have been rising despite the deterioration in the German ZEW Economic Sentiment Index.
Author: Keisuke Sakurai
