Should we sit back and watch the Japanese yen—now the world’s strongest currency—continue to rise?
16.10.2024
- South Africa: Retail Sales
- UK Producer Price Index
Yesterday, the three major U.S. stock indices all fell, leading to a market environment characterized by lower stock prices, lower interest rates, and lower crude oil prices. WTI crude oil barely held onto the key $70 level, falling to around $70.20. 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 $31.50.
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 closed below the 75-period MA support line, and on the daily chart, it has been trading just below the 200-period 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 8:00 PM, the US MBA Mortgage Applications Index; at 9:15 PM, Canadian Housing Starts; at 9:30 PM, Canadian Manufacturing Sales and the US Import Price Index; and at 3:40 AM, remarks by ECB President Lagarde are scheduled. We intend to cautiously monitor the upside potential of the Japanese yen, which has become the strongest currency.
Author: Keisuke Sakurai
