Caution over the euro’s upside potential amid hawkish comments from key figures

Caution over the euro’s upside potential amid hawkish comments from key figures

17.02.2023

In yesterday’s U.S. currency trading, the U.S. dollar strengthened after the U.S. January Producer Price Index, released yesterday, came in at 6.0%, exceeding the market forecast of 5.4%. The EUR/USD pair fell from 1.0721 to 1.0655, dropping from the daily 10-day moving average to the -2σ line of the Bollinger Bands.Technically, the EUR/USD pair has continued to decline during today’s Asian session. Since the daily RSI has fallen from a high of 70 to around 40, traders should remain cautious of a continued decline into the U.S. session.

European currencies saw the euro surge against the pound yesterday after Bundesbank President Nagel stated that "interest rates have not yet reached restrictive territory." The euro/pound pair rose from 0.8871 to 0.8908.The rise was supported by the 10-day moving average on the daily chart. On the 4-hour chart, the RSI has not yet reached 70, indicating room for further movement; therefore, we need to carefully assess whether the euro will continue to strengthen against the pound.

Today’s economic indicators include UK retail sales, German producer price index, and Turkish home sales at 4:00 PM; French consumer price index at 4:45 PM; Eurozone current account balance at 6:00 PM;at 10:30 PM: US Import Price Index, US Export Price Index, Canadian International Securities Turnover, Canadian Industrial Product Prices, and remarks by Barkin, President of the Richmond Fed; at 10:45 PM: remarks by Bowman, Fed Governor; at 12:00 AM: US Leading Economic Index; and at 1:00 AM: Russian Real GDP.We will closely monitor the upside potential of the euro, which has been strengthening on the back of hawkish comments from key officials.

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?