With German CPI showing signs of softening, should we watch the euro’s direction as it faces resistance?
01.10.2024
- Swiss Manufacturing PMI
- U.S. JOLTS Job Openings
In U.S. trading yesterday, the Canadian dollar strengthened. The CAD/JPY pair rebounded from 104.857 to 106.343. The hourly RSI rose from 30—the oversold level—to 62.On the 4-hour chart, the pair has already broken above the 200 SMA resistance level, and on the daily chart, it is beginning to form higher lows. We will need to monitor price action during European trading hours to see if the Canadian dollar’s momentum continues.
European currencies fell as the euro weakened against the U.S. dollar following yesterday’s release of Germany’s September consumer price index, which showed a year-over-year decline from 1.9% the previous month to 1.6%.The EUR/USD pair fell from 1.1209 to 1.1113. On the hourly chart, the price plummeted from above the 20-period moving average (MA) to below it. Although the 4-hour chart continues to show higher highs, the daily chart has seen a series of bearish candles with upper shadows, so traders should remain cautious of further weakness in the euro during U.S. trading hours.
Today’s schedule includes Japan’s employment statistics at 8:30, the Bank of Japan’s Tankan survey at 8:50, South Korea’strade balance at 9:30, Indonesia’s Manufacturing PMI at 9:30, Switzerland’s Manufacturing PMI at 16:30, the Eurozone’s Manufacturing PMI at 17:00, the UK’s Manufacturing PMI at 17:30, the Eurozone’s Harmonized Index of Consumer Prices (HICP) at 18:00,10:45 PM: U.S. PMI (Purchasing Managers’ Index), 11:00 PM: U.S. ISM Manufacturing Index, U.S. JOLTS Job Openings, 12:00 AM: U.S. Bostic:Remarks by Bostic, President of the Atlanta Fed; at 24:10, remarks by Cook, Fed Governor; and at 24:15, remarks by Schroeder, the new SNB Governor. Keep an eye on the direction of the euro, which is facing resistance due to softer-than-expected German CPI data.
Author: Keisuke Sakurai
