With the Eurozone HICP unchanged, all eyes are on the future direction of the euro-yen pair, which has found support at lower levels

With the Eurozone HICP unchanged, all eyes are on the future of the euro-yen pair as it consolidates at lower levels

19.09.2024

In the U.S. currency market the previous day, the U.S. dollar plummeted immediately after the release of the FOMC decision, which cut the policy rate by 0.5 percentage points for the first time in four and a half years.The USD/JPY pair temporarily plummeted from 142.067 to 140.431. It then rebounded sharply to 142.720 following remarks by Federal Reserve Chair Powell. During today’s Asian trading session, the yen has weakened further, with the pair rising to 143.936.

European currencies saw the euro fluctuate against the yen after yesterday’s release of the Eurozone’s August Harmonized Index of Consumer Prices (HICP) showed no change from the previous month’s 2.2% year-over-year rate.The EUR/JPY pair traded between 157.047 and 158.364, fluctuating around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the upside is being capped by the 75-period MA, while on the daily chart, the pair is poised to rebound just below the 10-period MA. As the pair has been rising during today’s Asian session, we will be watching its price action during the European session.

Today’s schedule includes: Australian employment figures at 10:30, Malaysia’s trade balance at 13:00, the Eurozone current account balance at 17:00, Hong Kong’s employment figures at 17:30, the Bank of England’s (BOE) interest rate decision and statement at 20:00, the Central Bank of Turkey’s (TCMB) interest rate decision and statement at 20:00, and at 20:30, remarks by Bundesbank President Nagel, followed by remarks by Bank of Canada (BOC) Deputy Governor Vincent at 21:00, and the U.S. current account balance and the Philadelphia Fed index at 21:30.remarks by German Bundesbank President Nagel, at 21:00 remarks by Canadian BOC Deputy Governor Vincent, at 21:30 U.S. current account balance, U.S. Philadelphia Fed Business Outlook Index, and U.S. initial jobless claims, and at 23:00 the U.S. Leading Economic Index and U.S. existing home sales.With the Eurozone HICP unchanged, we will be watching the future direction of the euro/yen pair, which has found support at lower levels.