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Attention Turns to the Direction of the Dollar-Yen Pair Ahead of U.S. Housing Data

Market Report

Attention Turns to the Direction of the Dollar-Yen Pair Ahead of U.S. Housing Data

Today's Highlights
  1. U.S. March Case-Shiller Home Price Index
  2. U.S. May Consumer Confidence Index

The previous day, with U.S. markets closed, crude oil prices fell on expectations of progress in talks between the U.S. and Iran, and the U.S. dollar faced resistance as inflation concerns eased somewhat.The USD/JPY pair fluctuated within a range of 158.76 to 159.06 before closing near 158.96, and is currently seeking direction around the 159.00 level.On the upside, the 159.00 to 159.20 range is likely to be a key focus, while on the downside, the 158.70 to 158.50 range is likely to be a key focus. With U.S. housing price indicators and the consumer confidence index scheduled for release today, we will be watching to see if the direction of the U.S. dollar becomes clearer.

Among European currencies, the euro held steady against the dollar as the U.S. dollar weakened slightly. The euro/dollar pair traded within a range of 1.1629 to 1.1654 before closing around 1.1636, and is currently seeking direction in the mid-1.1600s.The immediate focus is on whether the pair can break above the 1.1650 level, while the 1.1600 to 1.1590 range is likely to serve as support. Although major news events during European trading hours are limited, the euro’s upside potential is likely to shift depending on the U.S. dollar’s reaction to U.S. economic indicators.

Today’s key economic indicators include the U.S. March Case-Shiller Home Price Index, the March Home Price Index, and the first-quarter Home Price Index at 22:00, as well as the U.S. May Consumer Confidence Index at 23:00.The Case-Shiller Home Price Index is expected to rise 1.0% year-over-year, while the Consumer Confidence Index is forecast to come in at 92.0. During New York trading hours following the U.S. market reopening, results for home prices and consumer sentiment are likely to influence views on the U.S. economy, so we will carefully monitor the reactions of the U.S. dollar, the yen, and the euro.

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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