Will the euro, which has been firming since the ECB announcement, rise further over the weekend? Caution is advised.

Will the euro, which has been firming since the ECB announcement, rise further over the weekend? Caution is advised.

16.12.2022

In the U.S. currency market yesterday, the U.S. dollar emerged as the strongest currency despite the fact that the U.S. November retail sales figures, released yesterday, came in at -0.6% month-over-month—worse than the market forecast of -0.1%.The EUR/USD pair fell from 1.0736 to 1.0591, breaking below the 75-period moving average (MA) on the hourly chart. However, the 20-period MA continues to act as support on the hourly chart, and the pair is attempting to rebound during today’s Asian session. Therefore, we should remain cautious regarding whether the US dollar’s strength will hold through the final trading day of the week.

European currencies strengthened alongside the U.S. dollar after the ECB announced its policy rate decision yesterday, raising the rate from 2.0% to 2.5%. The euro outperformed the pound, which saw a 0.5-point rate hike following the BOE’s announcement, with the EUR/GBP pair rising from 0.8594 to 0.8729.Technically, while the RSI on the 4-hour chart has exceeded 70 and stands at 77.8, the RSI on the daily chart has not yet reached 70 and still has room to rise, so it will be worth watching whether the euro continues to strengthen against the pound.

Today’s economic indicators include UK Retail Sales at 4:00 PM, France Manufacturing/Services PMI at 5:15 PM, Germany Manufacturing/Services PMI at 5:30 PM, Eurozone Manufacturing/Services PMI at 6:00 PM, UKManufacturing/Services PMI, 7:00 PM for the Eurozone Consumer Price Index, 8:30 PM for Turkey’s Housing Price Index, 10:30 PM for Canada’s Wholesale Sales, 11:45 PM for the U.S. Manufacturing/Services PMI, and 2:00 AM for the U.S. Daily: Remarks by the President of the San Francisco Fed.We will closely monitor whether the euro, which has been firming since the ECB announcement, will extend its gains over the weekend.

Past Market Reports

1. 21.04.2026New

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

2. 20.04.2026New

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

3. 17.04.2026New

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

4. 16.04.2026New

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

5. 15.04.2026New

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

6. 14.04.2026

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

7. 13.04.2026

   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. 10.04.2026

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

9. 09.04.2026

   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. 08.04.2026

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