Should We Wait and See How Far the U.S. Dollar—Now the World’s Strongest Currency—Will Rise?
24.10.2024
- European Manufacturing/Services PMI
- U.S. Initial Unemployment Insurance Claims
In the U.S. currency market yesterday, the U.S. dollar became the strongest currency during U.S. trading hours after the September U.S. existing home sales figures, released yesterday, improved to a 1.0% decline from the previous month’s 2.5% decline.The USD/JPY pair rose from 150.965 to 153.181. The hourly RSI surged to 92. On the 4-hour chart, the price is moving along the +2σ line of the Bollinger Bands, and on the daily chart, the price broke above the 200-day SMA resistance line with a real body candle.
European currencies rose, with the euro gaining against the yen after the preliminary October consumer confidence index for the eurozone, released yesterday, showed a slight improvement to -12.5 from -12.9 the previous month.The euro/yen pair rose by approximately 2.2 yen, from 162.730 to 165.020. A “band walk” along the +2σ line of the hourly Bollinger Bands was observed. Similar price action was seen on the 4-hour chart, and on the daily chart, the 200-period EMA served as strong support at the lower end.
Today’s schedule includes South Korea’s real GDP at 8:00, Japan’s foreign and domestic securities investment at 8:50, Malaysia’s Consumer Price Index at 13:00, and India’sManufacturing/Services PMI, at 16:15 France’s Manufacturing/Services PMI, at 16:30 Germany’s Manufacturing/Services PMI, at 17:00 the Eurozone’s Manufacturing/Services PMI, at 17:30 the UK’sManufacturing/Services PMI at 17:30, U.S. Initial Jobless Claims at 21:00, U.S. PMI Purchasing Managers’ Index at 22:45, and U.S. New Housing Starts at 23:00. We will be closely monitoring the upside potential of the U.S. dollar, which has become the strongest currency.
Author: Keisuke Sakurai
