Should we sit back and watch the upward momentum of the U.S. dollar, now the world’s strongest currency?

Should we sit back and watch the upward momentum of the U.S. dollar, now the world’s strongest currency?

24.10.2024

In yesterday’s U.S. currency markets, the U.S. dollar emerged as the strongest currency during U.S. trading hours after the September existing home sales figure, released yesterday, improved to a 1.0% decline from the previous month’s 2.5% drop. The USD/JPY pair rose from 150.965 to 153.181, and 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 has broken above the 200-day SMA resistance line with a real body candle.

European currencies rose against the yen as 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-day EMA served as a strong support level.

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, India’s manufacturing and services PMI at 14:00, France’s manufacturing and services PMI at 16:15, and Germany’smanufacturing/services PMI, 5:00 PM for the Eurozone manufacturing/services PMI, 5:30 PM for the UK manufacturing/services PMI, 9:00 PM for US initial jobless claims, 10:45 PM for the US PMI Purchasing Managers’ Index, and 11:00 PM for US housing starts. We will be closely monitoring the upside potential of the US dollar, which has become the strongest currency.