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With U.S. and U.K. markets closed, traders are trying to gauge the direction of the dollar-yen pair

Market Report

With U.S. and U.K. markets closed, traders are trying to gauge the direction of the dollar-yen pair

Today's Highlights
  1. U.S. and U.K. Markets Closed
  2. Singapore GDP for January–March and April CPI

In the U.S. currency market yesterday, the U.S. dollar held steady. Today, at the start of the week, crude oil prices fell on expectations of an agreement between the U.S. and Iran, and with inflation concerns easing somewhat, the market is facing resistance on the upside.The USD/JPY pair traded within a range of 158.89 to 159.24 at the end of last week before closing near 159.20, but has since been pushed back into the upper 158-yen range.On the upside, the 159.00 to 159.20 range is likely to serve as a resistance level, while on the downside, the focus will be on whether the 158.50 to 158.00 range will act as support. With U.S. markets closed today, we will need to carefully assess the direction of the U.S. dollar amid thin trading volume.

Among European currencies, the euro rebounded against the dollar as the U.S. dollar weakened slightly. After trading within a range of 1.1588 to 1.1624 last weekend, the euro/dollar pair closed near 1.1603 and has risen to around 1.1640 at the start of the week.The immediate focus will be on whether the pair can break above the 1.1650 level, while on the downside, the 1.1600 to 1.1580 range is likely to be a key area of interest. With the UK market also closed today, the pound is likely to lack clear direction, so we will be watching to see how euro-led European currencies perform.

Today’s key economic indicator is Mexico’s April trade balance, due at 21:00. Singapore’s GDP came in at 1.0% quarter-on-quarter, exceeding expectations, while its CPI came in at 1.8% year-on-year, falling short of expectations—resulting in a mixed set of results.Since markets in the U.S., the U.K., Switzerland, and Hong Kong will be closed, liquidity is likely to be low during New York trading hours. We recommend adopting a wait-and-see approach while remaining vigilant for sudden price movements in major currencies.

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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