With the ECB meeting this week, all eyes are on whether the euro will continue to rise

All eyes are on whether the euro will rise ahead of this week’s ECB meeting

30.01.2023

In the U.S. currency markets last weekend, the Canadian dollar emerged as the strongest currency following the Bank of Canada’s policy rate announcement. The USD/CAD pair fell from 1.3346 to 1.3298, entering a downtrend along the 20-period moving average on the hourly chart.USD/CAD has continued its downward trend since the start of this month, consistently hitting new lows. Although there is a support line at the 200-day moving average near 1.3233, the daily RSI is trending downward before reaching 30, so caution is warranted regarding further downside potential.

Among European currencies, the euro was the weakest during U.S. trading hours, with the EUR/JPY pair falling approximately 100 pips from 141.805 to 140.794.On the 4-hour chart, the price had already broken above the 200-day SMA with a real body candle, but lower highs were observed, leading to a price decline. However, on the higher-timeframe daily chart, the 200-day SMA is acting as a support level, so we will be watching closely to see if the euro shows strength at the start of the week.

Today, at 16:00 CET, we have Germany’s Q4 GDP, Sweden’s Q4 GDP, Norway’s credit indicators, and Turkey’s economic confidence index; at 17:00, Switzerland’s KOF Leading Index; at 19:00, the EurozoneBusiness Sentiment Index at 19:00, and Brazil’s IGP-M Composite Price Index at 21:00. During U.S. trading hours, the Dallas Fed Manufacturing Activity Index is scheduled for 24:30, followed by the U.S. 6-month Treasury bill auction at 25:30. With the ECB meeting this week approaching, we will be closely monitoring price movements to see if the euro continues to rise.