Markets may be watching currency strength and weakness following the holiday break in Europe and the U.S.

Markets may be watching currency strength and weakness following the holiday break in Europe and the U.S.

26.12.2024

In the U.S. currency market yesterday, trading was subdued with limited price movement as markets in Europe and the U.S. were closed for the Christmas holiday. During today’s Asian session, the U.S. dollar rose against the yen. The USD/JPY pair edged up slightly from 157.074 to 157.476. On the 4-hour chart, the pair is finding support at the 10-period moving average, while on the daily chart, it is attempting to break above the +2σ level of the Bollinger Bands.

In European currency trading, the pound opened with a gap of about 60 pips higher against the yen during today’s Asian session. GBP/JPY rose from 196.853 to 197.551. 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 20-period MA is providing solid support at the lower end, and the price is gradually forming higher lows. We will be watching to see if the pound’s momentum continues during today’s U.S. trading session.

Today’s economic indicators include Japan’s housing starts and construction orders at 14:00, Singapore’s manufacturing production at 14:00, the TCMB policy rate and statement announcement in Turkey at 20:00, Russia’s foreign exchange reserves at 22:00,at 10:30 PM: U.S. Initial Jobless Claims; at 3:00 AM: U.S. Weekly Crude Oil Inventories; and at 3:00 AM: U.S. 7-Year Treasury Auction. We intend to carefully monitor currency strength and weakness following the holiday break in Europe and the U.S.