Should we be wary of the euro’s downward trend amid deteriorating PMI figures?

Should we be wary of the euro’s downward trend amid deteriorating PMI figures?

24.06.2022

Yesterday, the U.S. dollar faced resistance due to a decline in the 10-year Treasury yield, leading to a drop against the yen and the pound. The USD/JPY pair fell by approximately 2 yen, from 136.171 to 134.265, breaking below the 200-period simple moving average (SMA) support on the hourly chart.During today’s Asian session, the pair has been trading in a range around 134.739. On the 4-hour chart, the RSI is falling toward 30, so we will be watching price action starting in the European session to see if the decline continues.

European currencies weakened more sharply than the U.S. dollar, plummeting following yesterday’s PMI releases. The EUR/USD pair fell by approximately 100 pips from 1.0580 to 1.0483.Yesterday’s PMI releases showed declines from the previous readings for Germany, the Eurozone, and the UK. However, since the EUR/USD pair has entered a trading range on the 4-hour chart with a lower bound of 1.0466 and an upper bound of 1.0606, it seems prudent to adopt a wait-and-see approach for the time being.

Today’s schedule includes UK retail sales at 15:00 Asia time, Turkey’s Economic Sentiment Index and Capacity Utilization at 16:00 Europe time, Germany’s Ifo Business Climate Index at 17:00, remarks by RBA Governor Lowe at 20:30, and remarks by US Federal Reserve Governor Brainard:St. Louis Fed President, at 22:30 U.S. time: remarks by UK MPC member Pill, at 22:45: remarks by UK MPC member Haskell, at 23:00: U.S. University of Michigan Consumer Sentiment Index, and U.S. New Home Sales. We should remain vigilant regarding the euro’s movements, which have been declining due to worsening PMI data.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?