Market participants are likely to keep a close eye on the movements of the U.S. dollar and the euro, which have shown contrasting trends against the Japanese yen.

Market participants are likely to keep a close eye on the movements of the U.S. dollar and the euro, which have shown contrasting trends against the Japanese yen.

27.08.2024

In the U.S. currency market yesterday, the U.S. dollar rose against the yen after the July U.S. durable goods orders, released yesterday, rebounded to a 9.9% increase from a 6.7% decline the previous month.The USD/JPY pair rose from 143.445 to 144.658, moving back above the 20-period moving average (MA) on the hourly chart. However, on the 4-hour chart, the pair continues to trade below the 20-period MA, and on the daily chart, the downtrend that began on the 16th of this month remains intact.

European currencies fell against the yen after Germany’s August IFO Business Climate Index, released yesterday, declined to 86.6 from 87.0 the previous month. The euro/yen pair dropped by about 1 yen, from 161.501 to 160.506, trading below the 20-period moving average on the hourly chart. However, a rebound has been observed during today’s Asian trading session, with the pair already recovering to 161.876.

Today, at 8:50 AM, Japan’s Business Services Price Index; at 3:00 PM, Germany’s Real GDP; at 5:30 PM, Hong Kong’s Trade Balance; at 9:00 PM, Hungary’s Central Bank Policy Rate and Statement, and Mexico’s Trade Balance;at 10:00 PM, the U.S. Housing Price Index and the S&P/Case-Shiller Home Price Index; at 11:00 PM, the U.S. Conference Board Consumer Confidence Index and the Richmond Fed Manufacturing Index, as well as remarks by German Bundesbank President Nagel; and at 2:00 AM, a U.S. 2-year Treasury auction.We will closely monitor the movements of the U.S. dollar and the euro, which have shown contrasting trends against the Japanese yen.