Despite the decline in Germany's PMI, attention may turn to the upside potential of the euro/yen pair
23.08.2024
- Japan: Consumer Price Index
- Singapore Consumer Price Index
In the U.S. currency market yesterday, the U.S. dollar rose against the euro despite the fact that the U.S. August Composite PMI (Purchasing Managers' Index), released yesterday, fell to 54.1 from 54.3 the previous month.The EUR/USD pair fell from 1.1165 to 1.1098. It dropped from above the 20-period moving average (MA) on the hourly chart to a level below the 75-period MA. On the 4-hour chart, it has fallen just below the 20-period MA, and on the daily chart, it has pulled back from the +2σ line of the Bollinger Bands.
Despite the fact that Germany’s August manufacturing and services PMIs, released yesterday, both declined from their previous readings, the euro rose against the yen.The EUR/JPY pair fell from 161.469 to 162.908. On the hourly chart, the price has moved from below the 200-period SMA to above it. On the 4-hour chart, the price is forming higher lows, and on the daily chart, it is currently testing whether it can break above the 20-period MA resistance line.
Today’s schedule includes the UK GfK Consumer Confidence Survey at 8:01, Japan’s Consumer Price Index at 8:30, Singapore’s Consumer Price Index at 14:00, France’s Business Climate Survey at 15:45, Taiwan’s Industrial Production at 17:00, remarks by Bostic, President of the Atlanta Fed, at 21:00, Canada’s Retail Sales at 21:30,23:00: U.S. New Home Sales and remarks by Fed Chair Powell; 24:00: Remarks by Bank of England Governor Bailey; 25:30: Remarks by Chicago Fed President Goolsbee. Despite the decline in the German PMI, we will cautiously monitor the upside potential for the euro/yen pair, which has been rising.
Author: Keisuke Sakurai
