All eyes are on whether the U.S. dollar, which has become the strongest currency in the U.S., will maintain its strength

All eyes are on whether the U.S. dollar, which has become the strongest currency in the U.S., will maintain its strength

22.10.2024

In the U.S. currency market yesterday, the U.S. dollar rose against the yen despite the fact that the U.S. September Leading Economic Index, released yesterday, came in at -0.5%—down from the previous month’s -0.2%—and fell short of market expectations.The USD/JPY pair rose from 149.086 to 150.880. A band walk along the +2σ line of the hourly Bollinger Bands was observed. On the 4-hour chart, the RSI has risen to 70, and on the daily chart, the price is rising strongly with the 200 EMA acting as support.

European currencies saw the euro rise against the yen, despite the fact that Germany’s September Producer Price Index, released yesterday, worsened to -1.4% year-over-year from the previous month’s -0.8%.The euro/yen pair rose from 161.996 to 163.451, breaking through the upper resistance zone marked by the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the price has extended to the +2σ level of the Bollinger Bands, while on the daily chart, the 20-period moving average (MA) is emerging as a support level.

Today’s schedule includes the UK’s public sector net debt at 15:00, the Philippines’ retail sales at 17:00, Hong Kong’s consumer price index at 17:30, Hungary’s policy rate and statement at 21:00, Mexico’s economic activity index at 21:00, Canada’s industrial producer prices at 21:30,Canada’s Producer Price Index at 22:25, remarks by Bank of England Governor Bailey at 22:25, the Richmond Fed Manufacturing Index and remarks by Philadelphia Fed President Harker at 23:00, and South Korea’s Consumer Confidence Index at 30:00.We will carefully assess whether the U.S. dollar, which has become the strongest currency in U.S. time, will maintain its momentum.