All eyes are on whether the release of the U.S. PCE deflator will signal a shift in market sentiment
20.12.2024
- U.S. PCE Deflator
- Japan: Consumer Price Index
In the U.S. currency market the previous day, the U.S. dollar rose against the Japanese yen following the FOMC meeting. The USD/JPY pair rose from 154.438 to 157.795. An uptrend has emerged along the 10-period moving average on the hourly chart. On the daily chart, the candlesticks have extended to the +3σ level of the Bollinger Bands, and on the weekly chart, the RSI—which had been trending downward—has recovered from 48 to 60.
Among European currencies, the euro traded sideways against the U.S. dollar.The EUR/USD pair traded between 1.0347 and 1.0421. Prices remained range-bound just below the 20-period moving average on the hourly chart. On the 4-hour chart, the RSI is stuck around the 30 level, while on the daily chart, the pair is attempting to rebound from near the -3σ level of the Bollinger Bands. We will monitor the situation to determine whether the euro will rebound against the US dollar during US trading hours.
Today, at 8:30 AM, Japan’s Consumer Price Index; at 1:00 PM, Malaysia’s Consumer Price Index; at 4:00 PM, UK Retail Sales, UK Public Sector Net Lending, Germany’s Producer Price Index, and Turkey’s Consumer Confidence Index; at 4:45 PM, France’s Producer Price Index; at 5:30 PM, Hong Kong’s Current Account;at 7:30 PM, the Russian policy rate; at 10:30 PM, U.S. personal income, the U.S. PCE deflator, and remarks by New York Fed President Williams; and at midnight, the Eurozone Consumer Confidence Index and the University of Michigan Consumer Sentiment Index. We will be closely watching the release of the PCE deflator in U.S. time to see if there are any shifts in market sentiment.
Author: Keisuke Sakurai
