Market participants are closely watching the direction of the euro/yen pair, which has reversed course from an uptrend to a downtrend
19.12.2024
- U.S. Existing Home Sales
- Bank of England Governor Announces Policy Rate and Statement
In yesterday’s U.S. currency trading, the U.S. dollar rose against other currencies despite the FOMC cutting the policy rate by 0.25% to 4.25–4.50%, as the pace of rate cuts 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 session, it rebounded slightly, recovering to 1.0380.
European currencies weakened against the yen due to the strength of both the U.S. dollar and the yen. The euro/yen pair fell from 161.534 to 159.812, temporarily breaking 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 level, triggering a pullback. We will need to monitor price movements during U.S. trading hours to see if the euro continues to decline against the yen.
Today’s schedule includes a press conference by Bank of Japan Governor Ueda at 3:30 p.m., the GfK Consumer Confidence Index and Swiss trade balance at 4:00 p.m., and at 9:00 p.m., thethe Bank of England Governor’s interest rate decision and statement, at 10:30 PM U.S. initial jobless claims, U.S. third-quarter GDP, and the U.S. Philadelphia Fed Business Outlook Index, at 12:00 AM U.S. Leading Economic Index and U.S. existing home sales, at 12:30 AM U.S. weekly crude oil inventories, and at 1:00 AM U.S. Kansas City Fed Manufacturing Activity Index.We will be closely monitoring the direction of the EUR/JPY pair, which has reversed from gains to losses.
Author: Keisuke Sakurai
