Will the market wait and see how currency strength and weakness play out after the market closes?
25.12.2024
- Turkey Manufacturing Confidence Index
- Thailand: Trade Balance
In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 108.936 to 109.540. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the 10-period MA is acting as a support level, while on the daily chart, the pair is currently attempting to break above the resistance line formed by the 200-period exponential moving average (EMA). It will be interesting to see if the Canadian dollar can maintain its momentum after Christmas.
Among European currencies, the pound rose against the U.S. dollar.The GBP/USD pair rose from 1.2518 to 1.2574. It climbed from below the 20-period moving average (MA) on the hourly chart to a level above the 75-period MA. However, on the 4-hour chart, the pair continues to face resistance at the 20-period MA and remains in a downtrend. On the daily chart, the RSI has fallen to 38 but still has room to drop further toward 30, so we should remain cautious about a continued decline in the pound following this correction.
Today’s economic indicators include Japan’s Leading Economic Index at 14:00, Japan’s Machine Tool Orders at 15:00, Thailand’s Trade Balance at 15:30, Turkey’s Capacity Utilization Rate and Turkey’s Manufacturing Confidence Index at 16:00, India’s Money Supply at 20:30, and Russia’s Industrial Production at 25:00. Markets in Europe and the U.S. will be closed for the Christmas holiday.We intend to carefully monitor currency strength and weakness following the market closure.
Author: Keisuke Sakurai
