All Eyes on the Direction of the Euro/Yen, Which Has Reversed Course from a Rise to a Decline
19.12.2024
- U.S. Existing-Home Sales
- Bank of England Governor Announces Policy Rate and Statement
In the U.S. currency market yesterday, despite the FOMC cutting the policy rate by 0.25% to 4.25–4.50%, the U.S. dollar rose against other currencies as the pace of rate cuts for next year slowed.The EUR/USD pair fell from 1.0511 to 1.0346. The hourly RSI dropped to 16. On the daily chart, the pair briefly approached last month’s low for the year, but during today’s Asian trading session, it rebounded slightly, recovering to 1.0380.
European currencies weakened against the euro, pressured by a stronger U.S. dollar and a stronger yen.The euro/yen pair fell from 161.534 to 159.812. It temporarily broke below the support line formed by the 200-period simple moving average (SMA) on the hourly chart. On the weekly chart, the 20-period moving average (MA) acted as a resistance line, triggering a pullback. We will need to monitor price movements during U.S. trading hours to see if the euro will continue to decline against the yen.
Today’s schedule includes a press conference by Bank of Japan Governor Ueda at 15:30, the GfK Consumer Confidence Index and Switzerland’s trade balance at 16:00, the Bank of England Governor’s announcement of the policy interest rate and statement at 21:00, U.S. initial jobless claims at 22:30,U.S. third-quarter GDP and the U.S. Philadelphia Fed Business Outlook Index at 16:00; the U.S. Leading Economic Index and U.S. existing home sales at 24:00; U.S. weekly crude oil inventories at 24:30; and the U.S. Kansas City Fed Manufacturing Activity Index at 25:00.We will be closely monitoring the direction of the euro/yen pair, which has reversed from gains to losses.
Author: Keisuke Sakurai
