Should We Be Wary of Changes in Currency Strength and Weakness Due to Geopolitical Risks?
20.11.2024
- UK Consumer Price Index
- Remarks by U.S. Federal Reserve Vice Chair Bar
In the U.S. currency market yesterday, the U.S. dollar fluctuated against the yen as the U.S. October housing starts figure, released yesterday, worsened from a 0.5% decline the previous month to a 3.1% decline.USD/JPY traded between 153.280 and 154.794, with price action straddling the 20-period moving average (MA) on the hourly chart. On the daily chart, the price continues to find support at the 20-period MA, albeit barely, so we should pay close attention to the direction of the market during U.S. trading hours.
Among European currencies, the euro became the weakest currency during European trading hours following reports of a missile attack by Ukraine on Russia.The euro/yen pair traded between 161.487 and 163.922. Price action straddled the 20-period moving average on the hourly chart. On the daily chart, the candlesticks have extended to the -3σ level of the Bollinger Bands, so we will be watching for a rebound during European trading hours.
Today’s economic indicators include the UK Consumer Price Index, UK Producer Price Index, and UK Retail Price Index at 16:00; the German Producer Price Index at 16:00; the U.S. MBA Mortgage Applications Index at 21:00; and at 22:00, the Eurozoneremarks by ECB President Lagarde, at 24:00 remarks by U.S. Federal Reserve Vice Chair Bar, at 24:30 U.S. weekly crude oil inventories, at 25:00 remarks by U.S. Federal Reserve Governor Cook, and at 27:00 a U.S. 20-year Treasury bond auction.We should pay close attention to shifts in currency strength and weakness caused by geopolitical risks.
Author: Keisuke Sakurai
