Market participants are likely to keep a close eye on the direction of the U.S. dollar, which has strengthened following remarks by a senior U.S. official.

Market participants are likely to keep a close eye on the direction of the U.S. dollar, which has strengthened following remarks by a senior U.S. official

29.08.2024

In the previous day’s U.S. currency trading, the dollar rose after Atlanta Fed President Bostic stated, “We need to gather more data to support a rate cut in September.” While he acknowledged that the timing of a rate cut was appropriate, his remarks left room for further consideration. The USD/JPY pair rose from 143.673 to 145.049, breaking above the 20-period moving average on the hourly chart.On the daily chart, the pair has not yet shifted to a downtrend below the 10-day moving average, so we will be watching price action during European trading hours.

European currencies saw the euro become the weakest currency during the transition from European to U.S. trading hours. The euro/yen pair fell while other yen crosses rose, dropping from 161.372 to 160.425. On the hourly chart, the 75-period moving average (MA) is acting as a resistance zone, while on the 4-hour chart, the 20-period MA is functioning as a resistance line. On the other hand, the daily chart is showing signs of a lower wick, so we will be watching closely to see if the euro recovers during U.S. trading hours.

Today’s schedule includes Japan’s Foreign and Domestic Securities Investment at 8:50, New Zealand’s ANZ Business Confidence at 10:00, Japan’s Consumer Sentiment Index at 14:00, the Eurozone’s Consumer Confidence Index at 18:00, South Africa’s Producer Price Index at 18:30, Germany’s Consumer Price Index at 21:00, and Canada’s Current Account Balance at 21:30,US Real GDP, US Wholesale Inventories, US Initial Jobless Claims, US Core PCE Deflator, at 11:00 PM US Existing Home Sales, at 1:00 AM Swiss SNB Governor Jordan’s remarks, and at 2:00 AM US 7-Year Treasury Auction. We will be closely monitoring the direction of the US dollar, which has been firming on the back of remarks by key US officials.