All eyes are on Germany’s fourth-quarter GDP to see if it will trigger any movement in the euro
24.02.2023
- Germany's Q4 GDP
- University of Michigan Consumer Sentiment Index
U.S. currencies edged higher against the euro the previous day, causing the EUR/USD pair to decline.The EUR/USD pair fell by approximately 50 pips from 1.0628 to 1.0577, hitting a new monthly low for the second consecutive day. Currently, the EUR/USD is trading just below the 75-day moving average (MA), with the daily RSI hovering around 36. On the 4-hour chart, the pair is midway in a move from the upper boundary to the lower boundary of a downtrend channel, so we will be watching closely to see if today’s U.S. economic data releases cause the euro to decline.
Among European currencies, the Swiss franc was the weakest from European trading hours through U.S. trading hours. The CHF/JPY pair fell from 145.031 to 143.680, extending its decline after breaking below the 75-period moving average on the 4-hour chart. From a technical perspective, the pair continues to rebound toward the 61.8% Fibonacci retracement level on the daily chart, so it will be worth watching whether further yen weakness occurs depending on economic indicators.
Today’s schedule includes: Germany’s Q4 GDP and GfK Consumer Confidence Index at 4:00 PM; France’s Consumer Confidence Index and remarks by Bundesbank President Nagel at 4:45 PM; U.S. Personal Income and Core PCE Deflator at 10:30 PM; U.S. New Home Sales and University of Michigan Consumer Sentiment Index at 12:00 AM;at 12:15 AM, remarks by U.S. Federal Reserve Governor Jefferson and U.S. Federal Reserve Bank of Cleveland President Mester; at 1:30 AM, remarks by UK MPC Member Tenreyro and U.S. Federal Reserve Bank of St. Louis President Bullard; and at 3:30 AM, remarks by U.S. Federal Reserve Bank of Boston President Collins and U.S. Federal Reserve Governor Waller.We will be watching closely to see if the release of Germany’s fourth-quarter GDP data triggers any movement in the euro.
Author: Keisuke Sakurai
