Should We Wait and See How Far the Japanese Yen—Now the Strongest Currency—Will Rise?
16.10.2024
- South Africa: Retail Sales
- UK Producer Price Index
Yesterday, the three major stock indices in the U.S. market all fell, resulting in a market environment characterized by falling stock prices, falling interest rates, and falling crude oil prices. WTI crude oil barely held onto the key $70 level, falling to around $70.2.Natural gas, on the other hand, rose 0.89% from the previous day, trading in the $2.49 range. The five major precious metals saw mixed performance, with silver posting a significant gain, rising 1.3% from the previous day to reach $31.5.
In the foreign exchange market, the Japanese yen emerged as the strongest currency from late Asian trading hours through U.S. trading hours. The AUD/JPY pair fell from 100.773 to 99.841. The decline occurred as the pair encountered resistance at the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has broken below the 75-MA support line with a real-body candle, and on the daily chart, it has been trading just below the 200-SMA for over a week.
Today’s economic indicators include Japan’s machinery orders at 8:50, the UK’s Consumer Price Index, retail sales, and Producer Price Index at 15:00, Thailand’s policy rate and statement at 16:00, South Africa’s retail sales at 20:00,at 20:00, the U.S. MBA Mortgage Applications Index; at 21:15, Canadian housing starts; at 21:30, Canadian manufacturing sales and the U.S. Import Price Index; and at 27:40, remarks by ECB President Lagarde are scheduled.I intend to cautiously monitor the upside potential of the Japanese yen, which has become the strongest currency.
Author: Keisuke Sakurai
