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Market Participants May Be Watching the Euro's Upside Potential Against the U.S. Dollar

Market Report

Market Participants May Be Watching the Euro's Upside Potential Against the U.S. Dollar

Today's Highlights
  1. Japan: Machinery Orders
  2. Europe: Industrial Production

In the U.S. currency market yesterday, the U.S. dollar fell against the yen despite the fact that the U.S. March Producer Price Index (PPI), released yesterday, rose 4.0% year-over-year, up from the previous month’s 3.4% increase.The USD/JPY pair fell from 159.426 to 158.602, moving downward along the -2σ line of the hourly Bollinger Bands. On the 4-hour chart, the price has fallen to just below the 200-period SMA, and on the daily chart, it has broken below the 20-period MA, which had previously served as support.

Among European currencies, the euro continued to rise against the U.S. dollar. The euro/dollar pair has risen for seven consecutive trading days. It climbed from 1.1748 to 1.1809, finding support at the 10-period moving average on the hourly chart and trending upward. On the 4-hour chart, the pair was seen moving along the +2σ line of the Bollinger Bands.On the daily chart, as on the 4-hour chart, the price continues to move along the +2σ line of the Bollinger Bands, and the RSI is currently rising toward 65.

Today’s economic indicators include Japan’s machinery orders at 8:50, France’s consumer price index at 15:45, the Eurozone’s industrial production at 18:00, the U.S. MBA mortgage applications index at 20:00, Canada’s manufacturing sales at 21:30,U.S. Import Price Index, U.S. NY Fed Manufacturing Index, Canadian Wholesale Sales, remarks by U.S. Federal Reserve Governor Barr, at 23:00 the U.S. NAHB Housing Market Index, at 23:30 U.S. weekly crude oil inventories,at 24:50, remarks by Bank of England Governor Bailey; at 26:00, remarks by Swiss National Bank (SNB) Governor Schlegel; at 26:45, remarks by U.S. Federal Reserve Vice Chair Bowman; and at 27:00, the U.S. Beige Book (Regional Federal Reserve Economic Report).We will be keeping a close eye on the upside potential for the euro, which has risen against the U.S. dollar.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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