With U.S. economic indicators showing strength, attention is turning to the upside potential of the U.S. dollar
16.08.2024
- New Zealand Producer Price Index
- Switzerland: Industrial Production
In the U.S. currency market yesterday, the U.S. dollar rose immediately after the release of July retail sales data, which showed a rise from 0.0% in the previous month to 1.0%. The USD/JPY pair climbed from 147.048 to 149.393. The 75-period moving average (MA) on the hourly chart acted as a support level, leading to a strong and sharp surge.On the 4-hour chart, the price has broken above the 75-period moving average (MA) from just below the 20-period MA and is continuing to rise. On the daily chart, the price has broken above the 10-period MA with a bullish candle.
Among European currencies, the Swiss franc weakened against the US dollar during US trading hours, following the Japanese yen. The USD/CHF pair rose from 0.8640 to 0.8748. It surged sharply as the 20-period moving average (MA) on the hourly chart provided support at the lower end.On the 4-hour chart, the pair has also begun rising from the 20-period moving average (MA), and on the daily chart, it has surged from the 10-period MA to just below the 20-period MA. We will need to monitor price movements during European trading hours to see if the Swiss franc continues to weaken against the US dollar.
Today’s economic indicators include the New Zealand Producer Price Index at 7:45, Japan’s Foreign and Domestic Securities Investment at 8:50, Malaysia’s Current Account Balance at 13:00, UK Retail Sales at 15:00, Swiss Industrial Production at 15:30, and the Eurozonetrade balance at 18:00, Canada’s housing starts at 21:15, U.S. housing starts at 21:30, the University of Michigan Consumer Sentiment Index at 23:00, and remarks by Chicago Fed President Goolsbee at 26:25. We will closely monitor the upside potential of the U.S. dollar, which has strengthened on the back of strong U.S. economic data for July.
Author: Keisuke Sakurai
