All eyes are on whether the ECB’s monthly report will cause the euro, which has been showing strength, to shift course

All eyes are on whether the ECB’s monthly report will cause the euro, which has been showing strength, to shift course

16.02.2023

In U.S. currency trading the previous day, the Canadian dollar strengthened toward the end of the U.S. trading session and rose against the yen.The CAD/JPY pair rose from 99.437 to 100.282. It hit a new high for the year and broke through the key 100-yen level. The current level of the CAD/JPY pair is the highest since December 20 of last year, and it has already broken above the 75-day moving average. We will closely monitor price movements during U.S. trading hours to see if the upward trend against the yen continues.

Among European currencies, the euro made significant gains against the pound. The EUR/GBP pair rose from 0.8815 to 0.8902. An uptrend has emerged along the 10-period moving average on the hourly chart. On the higher-timeframe 4-hour chart, the price rose in a straight line from the -2σ to the +3σ of the Bollinger Bands, and on the daily chart, the price movement offset the declines of the past four days.It remains to be seen whether the euro will continue to rise for the time being, so we need to carefully assess the direction of the market.

Today’s schedule includes Hong Kong’s unemployment rate at 5:30 PM, the ECB’s monthly report at 6:00 PM, Israel’s real GDP at 8:00 PM, Turkey’s housing price index at 8:30 PM, remarks by German Bundesbank President Nagel at 10:00 PM, U.S. initial jobless claims at 10:30 PM,U.S. Producer Price Index, U.S. Housing Starts, and U.S. Philadelphia Fed Business Outlook Index; at 10:45 PM, remarks by U.S. Federal Reserve Bank of Philadelphia President Mester; at 12:30 AM, U.S. weekly natural gas inventories; at 2:00 AM, remarks by U.K. MPC member Pill; and at 6:00 AM the following day, remarks by U.S. Federal Reserve Governor Cook.We will carefully assess the direction of the euro, which has been strengthening on the back of the ECB’s monthly report, to see if this trend changes.