Should we be wary of shifts in currency strength driven by 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 dollar fluctuated against the yen as the U.S. October housing starts data, released yesterday, worsened from a 0.5% decline in the previous month to a 3.1% decline. The USD/JPY pair traded between 153.280 and 154.794, with price action straddling the 20-period moving average on the hourly chart.On the daily chart, the price continues to find support at the 20-day moving average, so we should pay close attention to the direction of the market during U.S. trading hours.
European currencies came under pressure following reports of Ukrainian missile strikes against Russia, with the euro becoming the weakest currency during European trading hours. The euro/yen pair traded between 161.487 and 163.922. Price action was seen fluctuating around 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 potential 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 US MBA Mortgage Applications Index at 21:00; remarks by ECB President Lagarde at 22:00; remarks by Fed Vice Chair Barr at 24:00; US weekly crude oil inventories at 24:30;at 1:00 AM, remarks by Fed Governor Cook; and at 3:00 AM, the US 20-year Treasury auction. We should pay close attention to shifts in currency strength driven by geopolitical risks.
Author: Keisuke Sakurai
