Should we keep an eye on the downside potential of the U.S. dollar, now that it has become the weakest currency?
27.09.2024
- Consumer Price Index for Tokyo's 23 Wards
- Remarks by Nagel, President of the German Central Bank
In U.S. currency trading yesterday, the dollar weakened during U.S. trading hours after the August U.S. durable goods orders report, released yesterday, showed a sharp decline from the previous month’s 9.8% to 0.0%. GBP/USD rose from 1.3312 to 1.3435, surging from below the 20-period moving average on the hourly chart to above it.Similar price action was observed on the 4-hour chart, and the RSI, which had been declining on the daily chart, swung back just below 70.
Among European currencies, the euro rose against the U.S. dollar. The EUR/USD pair climbed 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 worth watching whether the euro makes further gains against the U.S. dollar during European trading hours.
Today’s schedule includes: Japan’s Tokyo Metropolitan Area Consumer Price Index at 8:30, Japan’s Leading Economic Index at 14:00, France’s Consumer Price Index, Producer Price Index, and Consumer Spending at 15:45, Turkey’s Trade Balance and Economic Confidence at 16:00, and Germany’sunemployment rate, at 7:00 PM the UK CBI Retail Trade Survey, at 8:15 PM remarks by German Bundesbank President Nagel, at 9:30 PM Canadian GDP, US personal income, and US PCE deflator, at 10:30 PM remarks by US Federal Reserve Governor Kugler, and at 11:00 PM the US 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
