All eyes are on whether the release of the U.S. PCE deflator will bring about 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 (MA) 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 fluctuated between 1.0347 and 1.0421. Prices consolidated just below the 20-period moving average on the hourly chart.On the 4-hour chart, the RSI is stuck around 30, while on the daily chart, the pair is attempting to rebound from near the -3σ level of the Bollinger Bands. We need to assess whether the euro will rebound against the U.S. dollar during U.S. trading hours.
Today’s schedule includes Japan’s Consumer Price Index at 8:30, Malaysia’s Consumer Price Index at 13:00, UK Retail Sales at 16:00,UK public sector net debt, German Producer Price Index, and Turkish Consumer Confidence Index at 4:00 PM; the French Producer Price Index at 4:45 PM; Hong Kong’s current account balance at 5:30 PM;at 19:30, the Russian policy rate; at 22:30, U.S. personal income, the U.S. PCE deflator, and remarks by New York Fed President Williams; and at 24:00, the Eurozone Consumer Confidence Index and the University of Michigan Consumer Sentiment Index.We will be closely watching to see if the release of the U.S. PCE Deflator brings about any shift in market sentiment.
Author: Keisuke Sakurai
