Should We Keep an Eye on the Downside Potential of the U.S. Dollar, Now the Weakest Currency?
27.09.2024
- Consumer Price Index for Tokyo's 23 Wards, Japan
- Remarks by Nagel, President of the German Central Bank
In U.S. currency trading the previous day, the U.S. dollar weakened during U.S. trading hours after the August U.S. durable goods orders, released yesterday, fell sharply from 9.8% the previous month to 0.0%. The GBP/USD pair rose from 1.3312 to 1.3435, surging from below the 20-period moving average on the hourly chart to above it.A similar price movement was observed on the 4-hour chart, and the RSI—which had been declining on the daily chart—surged back to just below 70.
Among European currencies, the euro rose against the U.S. dollar.The euro rose against the U.S. dollar from 1.1125 to 1.1189. The 200-period EMA on the hourly chart is acting as support, and the price has risen to the +3σ level of the Bollinger Bands. On the daily chart, a gradual uptrend along the 10-period MA continues, so it will be interesting to see if the euro makes further gains against the U.S. dollar during European trading hours.
Today’s schedule includes the Japan Consumer Price Index (Tokyo Metropolitan Area) at 8:30, the Japan Leading Economic Index at 14:00, the France Consumer Price Index, France Producer Price Index, and France Consumer Spending at 15:45, the Turkey Trade Balance at 16:00,Turkey’s Economic Confidence Index at 4:55 p.m., Germany’s Unemployment Rate at 6:55 p.m., the UK’s CBI Retail Trade Survey at 7:00 p.m., remarks by German Bundesbank President Nagel at 8:15 p.m., Canada’s GDP at 9:30 p.m.,U.S. personal income, U.S. PCE deflator; at 22:30, remarks by U.S. Federal Reserve Governor Kugler; and at 23:00, the U.S. University of Michigan Consumer Sentiment Index. We will be watching for further downside potential in the U.S. dollar, which has become the weakest currency.
Author: Keisuke Sakurai
