All eyes are on whether the euro, which has been under pressure from the pound, will show any signs of a rebound

All eyes are on whether the euro, which has been under pressure from the pound, will show any signs of a rebound

13.02.2023

Last weekend, the Canadian dollar emerged as the strongest currency in the U.S. market following the release of Canada’s January employment report, which showed the unemployment rate had fallen to 5.0%. The CAD/JPY pair rose by approximately 2 yen, from 96.623 to 98.553.During today’s Asian trading session, the trend from last weekend has continued, with the yen remaining weak. From a technical perspective, the CAD/JPY pair has broken above the daily 20-day moving average and is forming higher lows. Since the +3σ line of the Bollinger Bands is trending upward, we should watch for a continued rise.

Among European currencies, the pound rose against the euro. The EUR/GBP pair fell from 0.8871 to 0.8823. A downtrend has emerged along the 4-hour 10-MA. During last weekend’s decline, the EUR/GBP pair briefly dipped below the 4-hour 200-SMA but ultimately found support there. Therefore, we should remain cautious about the direction of the market, watching to see if a rebound will occur and push the pair to a new recent high.

Today’s economic indicators include Turkey’s current account balance at 4:00 p.m. CET, Switzerland’s consumer price index and Hungary’s industrial production at 4:30 p.m. CET, and India’s consumer price index at 9:00 p.m. CET. During U.S. trading hours, Fed Governor Bowman is scheduled to speak at 10:00 p.m. ET, followed by the Philippines’ current account balance and a U.S. 6-month Treasury bill auction at 1:30 a.m. ET.We will be watching closely to see if the euro, which has been under pressure from the pound, can stage a rebound.