All eyes are on the euro, which has been under pressure from the U.S. dollar since the release of the U.S. jobs report

All eyes are on the euro, which has been under pressure from the U.S. dollar since the release of the U.S. jobs report

07.02.2023

In the U.S. currency market yesterday, the Canadian dollar weakened against the U.S. dollar following the release of Canada’s January Ivey Purchasing Managers’ Index, which came in at 60.1.The USD/CAD pair rose by approximately 80 pips from 1.3396 to 1.3475, hitting a new high for the month. While the USD/CAD pair has been gaining momentum this month, the weekly RSI remains above 70, and the reversal pattern has not yet broken down, so traders should remain cautious of a potential pullback following this rally.

European currencies fell against the U.S. dollar yesterday after December retail sales data was released, showing that the euro’s decline had widened. The EUR/USD pair fell by approximately 90 pips from 1.0798 to 1.0709. The price broke below the 200-period SMA on the 4-hour chart with a bearish candle.On the daily chart, the RSI for EUR/USD is at 50, a neutral level, leaving room for further downside, so traders should remain cautious of additional declines.

Today’s economic indicators include German industrial production and UK Halifax house prices at 4:00 PM, the French trade balance at 4:45 PM, remarks by BOE Deputy Governor Ramsden at 6:00 PM, remarks by MPC Member Pill at 7:15 PM, the Canadian and U.S. trade balances at 10:30 PM,at 24:00, remarks by UK BOE Deputy Governor Canrif; at 26:30, remarks by Canadian BOC Governor Maclean; at 26:40, remarks by US Fed Chair Powell; at 27:00, the US 3-year Treasury auction; and at 28:00, remarks by US Fed Vice Chair Barr.We will be watching the euro’s trajectory, as it has been under pressure from the US dollar since the release of the US jobs report.

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?