Concerns over further downside potential for the euro, which is falling due to weak economic indicators

Concerns over further downside potential for the euro, which is falling due to weak economic indicators

08.02.2023

Despite Fed Chair Powell’s comments regarding further rate hikes, the U.S. dollar was the weakest currency in the previous day’s trading.The EUR/USD pair rebounded by just over 90 pips, rising from 1.0669 to 1.0765. It recovered the ground lost after deviating downward from the 200-period simple moving average (SMA) on the 4-hour chart. However, on the daily chart, the EUR/USD has been in a downtrend since the RSI touched 70, so we need to carefully assess whether this rebound will continue.

European currencies fell sharply against the yen after Germany’s December industrial production, released yesterday, came in at -3.1%, significantly worse than the market forecast of -1.9%.The EUR/JPY pair fell by about 2 yen, from 142.327 to 140.285, and broke below the 20-period moving average on the 4-hour chart. Technically, since the ±3σ lines of the daily Bollinger Bands are pointing downward, we should remain cautious about a continued decline.

Today’s schedule includes the U.S. MBA Mortgage Applications Index at 9:00 PM, remarks by U.S. Federal Reserve Bank of New York President Williams at 11:15 PM, remarks by U.S. Federal Reserve Governor Cook at 11:30 PM, U.S. Wholesale Inventories at 12:00 AM,remarks by U.S. Federal Reserve Vice Chair Barr, remarks by U.S. Atlanta Fed President Bostic, U.S. weekly crude oil inventories at 12:30 a.m., remarks by U.S. Minneapolis Fed President Kashkari at 2:30 a.m., a U.S. 10-year Treasury auction at 3:00 a.m., and remarks by U.S. Federal Reserve Governor Waller at 3:45 a.m.We should remain cautious about the downside potential for the euro, which is falling due to weak economic indicators.

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?