With the ECB meeting next week, all eyes are on the euro, which is gaining strength

With the ECB meeting next week, all eyes are on the euro, which is gaining strength

03.06.2022

The U.S. dollar weakened against the euro yesterday, with the EUR/USD pair rising by more than 100 pips from 1.064 to 1.076.This was driven by the fact that the U.S. ADP employment report released yesterday fell significantly short of market expectations, coupled with U.S. April manufacturing orders coming in below forecasts at 0.3%. With the euro continuing its upward trend, we will be watching to see if the EUR/USD pair breaks above the 75-day moving average (MA) line of 1.078 on the daily chart.

Among European currencies, the euro rose against the yen, climbing approximately 130 pips from 138.37 to 139.77. As the EUR/JPY pair is rising with momentum that could push it close to this year’s high of 139.96, I intend to wait and see whether this upward trend continues, while also considering the possibility of a corrective pullback toward the 20-period moving average on the 4-hour chart.

Today’s schedule includes Germany’s trade balance at 3:00 PM CET, France’s industrial production and manufacturing production index at 3:45 PM CET, Turkey’s consumer price index at 4:00 PM CET, Germany’s services PMI at 4:55 PM CET, the Eurozone’s services PMI at 5:00 PM CET, and Eurozone retail sales at 6:00 PM CET, followed by the U.S. employment report at 9:30 PM EST,22:45 US Services PMI, 23:00 US ISM Non-Manufacturing Index, and 23:30 remarks by Fed Vice Chair Brainard. We will closely monitor the release of these indicators during US trading hours to assess price movements over the weekend.