With German CPI data showing a slowdown, investors should watch the euro’s direction as it faces resistance
01.10.2024
- Swiss Manufacturing PMI
- U.S. JOLTS Job Openings
In yesterday’s U.S. trading session, the Canadian dollar strengthened. The CAD/JPY pair rebounded from 104.857 to 106.343. The hourly RSI rose from the oversold level of 30 to 62.On the 4-hour chart, the pair has already broken above the 200-period SMA resistance line, and on the daily chart, it is beginning to form higher lows. We will need to watch price action during European trading hours to see if the Canadian dollar’s momentum holds.
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% in the previous month to 1.6%.The EUR/USD pair fell from 1.1209 to 1.1113. On the hourly chart, it 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 produced consecutive bearish candles with upper shadows, so we should remain cautious about a potential weakening of 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 AM Indonesia’s Manufacturing PMI, at 4:30 PM Switzerland’s Manufacturing PMI, at 5:00 PM the Eurozone’s Manufacturing PMI, at 5:30 PM the UK’s Manufacturing PMI, at 6:00 PM the Eurozone’s Harmonized Index of Consumer Prices (HICP),at 10:45 PM: US PMI (Purchasing Managers' Index), at 11:00 PM: US ISM Manufacturing Index and US JOLTS Job Openings, at 12:00 AM: Remarks by Bostic, President of the Atlanta Fed, at 12:10 AM: Remarks by Cook, Fed Governor, and at 12:15 AM: Remarks by Schroeder, the new SNB Governor.We should keep an eye on the direction of the euro, which is facing resistance due to softer-than-expected German CPI data.
Author: Keisuke Sakurai
