Will the weakening U.S. dollar rebound? Keep an eye on price movements at the start of the week.

Will the weakening U.S. dollar rebound? Keep an eye on price movements at the start of the week.

21.10.2024

Last weekend, the U.S. dollar weakened against the yen after the September U.S. housing starts data, released on the 18th, showed a decline from 1.356 million units in the previous month to 1.354 million units. The USD/JPY pair fell from 150.278 to 149.363, with the price breaking below the 75-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has broken below the 20-period moving average from above, and on the daily chart, it has rebounded at the 50% Fibonacci retracement level starting from July 1 of this year.

European currencies rose as the pound strengthened against the U.S. dollar following the release on the 18th of UK retail sales data for September, which showed a year-on-year increase of 3.9%, up from 2.5% the previous month.GBP/USD rose from 1.2298 to 1.3070, rebounding to just below the 200-period EMA on the hourly chart. On the 4-hour chart, the price has shifted from below the 20-period MA to above it, and on the daily chart, the RSI has risen from 36 to 42.

Today’s schedule includes the UK Rightmove House Price Index at 8:01, China’s Prime Lending Rate at 10:00, Germany’s Producer Price Index at 15:00, the Philippines’ Industrial Production at 17:00, and at 21:15, U.S. Logan:Remarks by Logan, President of the Dallas Fed; at 23:00, the U.S. Leading Economic Index; at 23:30, Turkey’s Central Government Debt; at 24:30, the U.S. 6-month Treasury bill auction; and at 26:00, remarks by Kashkari, President of the Minneapolis Fed. We will be watching the price movements at the start of the week to see if the weakening U.S. dollar will rebound.