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

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. Leading Economic Index for September, released yesterday, came in at -0.5%—down from -0.2% the previous month—and missed 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 200 EMA is acting as support, driving a strong upward trend.

Despite the fact that Germany’s September producer price index, released yesterday, worsened year-over-year from -0.8% in the previous month to -1.4%, the euro rose against the yen.The euro/yen pair rose from 161.996 to 163.451, breaking through the upper resistance zone of 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 line.

Today, at 3:00 PM, UK public sector net debt; at 5:00 PM, Philippine retail sales; at 5:30 PM, Hong Kong consumer price index; at 9:00 PM, Hungary’s policy rate and statement;Mexico’s Economic Activity Index at 9:30 PM, Canada’s Industrial Product Prices and Producer Price Index at 9:30 PM, remarks by Bank of England Governor Bailey at 10:25 PM, the Richmond Fed Manufacturing Index and remarks by Philadelphia Fed President Harker at 11:00 PM, and South Korea’s Consumer Confidence Index at 11:30 PM.We will need to carefully assess whether the U.S. dollar, which has become the strongest currency in U.S. time, will maintain its momentum.