Should we be wary of currency strength and weakness during European trading hours?

Should we be wary of currency strength and weakness during European trading hours?

20.08.2024

In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen after the U.S. July Leading Economic Index, released yesterday, deteriorated to -0.6% from -0.2% the previous month. The USD/JPY pair dropped from 148.056 to 145.176, falling along the -3σ line of the hourly Bollinger Bands.On the 4-hour chart, a decline from the 20-day moving average is evident, and on the daily chart, the RSI has fallen to 35.

Among European currencies, the pound fell against the yen. The GBP/JPY pair dropped from 191.613 to 188.249. It plummeted from the 20-period moving average (MA) on the hourly chart to just below the 200-period simple moving average (SMA). On the 4-hour chart, it has fallen to the -2σ level of the Bollinger Bands. However, it has shown signs of recovery during today’s Asian session, and with the pound trading firmer, we will be watching for a potential rebound during European trading hours.

Today’s schedule includes the release of China’s prime lending rate at 10:00, the RBA minutes at 10:30, Germany’s producer price index at 15:00, Sweden’s policy rate and the EU’s current account balance at 16:30, Taiwan’s current account balance at 17:20, and at 18:00, the EU’sConsumer Price Index and Construction Output, at 6:30 PM the Swiss SNB Governor Jordan’s remarks, at 8:00 PM the Turkish CBRT policy rate and statement, at 9:30 PM the Canadian Consumer Price Index, at 2:35 AM the U.S. Atlanta Fed President Bostic’s remarks, and at 3:45 AM the U.S. Fed Chair Bar’s remarks.We will carefully assess currency strength and weakness during European trading hours.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed