With the PPI hitting a record high, all eyes are on the direction of the euro

With the PPI hitting a record high, all eyes are on the direction of the euro

05.10.2022

In yesterday’s U.S. currency markets, the U.S. dollar faced resistance as the yield on the 10-year Treasury note fell to 3.62%, causing the EUR/USD pair to rise by just under 200 pips from 0.9806 to 0.9999.Following yesterday’s sharp rise, the EUR/USD broke above the 200-period simple moving average (SMA) on the 4-hour chart with a bullish candle and reached the upper boundary of the downtrend line on the daily chart that has been in place since February of this year. We will be watching to see if it breaks above parity on the daily chart in the near future.

European currencies saw the euro emerge as the strongest currency during U.S. trading hours after the August Eurozone Producer Price Index (PPI), released yesterday, hit a record high, rising to 43.3% year-over-year from 37.9% the previous month. The euro/yen pair rose by more than 2 yen, climbing from 141.940 to 144.078.Yesterday’s rally pushed the EUR/JPY pair to the high levels seen on September 20. Since the 4-hour RSI has signaled a reversal, we will be watching for signs of continued upward momentum.

Today, during Asian trading hours, Germany’s trade balance will be released at 15:00, followed by France’s industrial production and manufacturing production index at 15:45; during European trading hours, France’s services PMI will be released at 16:50,at 16:55 the German Services PMI, at 17:00 the Eurozone Services PMI, at 17:30 the UK Services PMI, at 20:00 the US MBA Mortgage Applications Index, at 21:15 the US ADP National Employment Report, at 21:30 US time the Canadian Trade Balance and US Trade Balance,22:45 US Services PMI, 23:00 US ISM Non-Manufacturing PMI, 23:30 US Weekly Crude Oil Inventories, and 29:00 remarks by Bostic, President of the Atlanta Fed. I want to keep an eye on the direction of the euro, as the PPI has hit a record high and continues to rise.

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?