Market participants are likely to keep a close eye on the upside potential of European currencies following weaker-than-expected economic indicators

Market participants are likely to keep a close eye on the upside potential of European currencies following weaker-than-expected economic indicators

25.10.2022

In the U.S. currency market yesterday, the dollar faced resistance as the Dollar Index fell from 112 to 111. Despite this resistance, the dollar held its ground against the pound, with GBP/USD trading around 1.1270; it has since risen to 1.1312 during Asian trading hours.Although reports emerged yesterday that a new British Prime Minister had been elected and that former Chancellor Rishi Sunak would take office, the pound failed to rise, and price movements remained limited.

Despite the fact that Germany’s October Manufacturing PMI (Purchasing Managers’ Index), released yesterday, came in at 45.7—below the market forecast of 47.2—the euro rose against the yen.The EUR/JPY pair rose from 145.955 to 147.198. It is showing a gradual upward trend along the 10-period moving average (MA) on the hourly chart. On the 4-hour chart as well, the EUR/JPY pair has not experienced any sharp fluctuations, and since the 4-hour RSI has reversed near the 60 level, it will be worth watching to see if an upward move occurs during U.S. trading hours.

Today, at 3:00 PM Asia time, Japan’s machine tool orders will be released; at 4:00 PM Europe time, Turkey’s economic sentiment index and capacity utilization rate; at 5:00 PM, Germany’s IFO business climate index; at 5:55 PM, remarks by MPC member Pill; and at 7:00 PM, the UK’sCBI Business Survey, the U.S. S&P/Case-Shiller Home Price Index at 10:00 PM U.S. time, the U.S. Consumer Confidence Index and the Richmond Fed Manufacturing Index at 11:00 PM, a U.S. 2-year Treasury auction at 2:00 AM, and remarks by Fed Governor Waller at 2:55 AM. We will be watching for upside potential in European currencies following the weaker-than-expected economic 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?