Keep an eye on the euro's direction this weekend following the 0.5% rate hike

Keep an eye on the euro's direction this weekend following the 0.5% rate hike

17.03.2023

In yesterday's U.S. currency trading, the U.S. dollar rebounded against the yen after the U.S. February housing starts figure, released yesterday, came in at 9.8%, significantly exceeding the market forecast of 0.2%.The USD/JPY pair rose from 131.732 to 133.831, rebounding up to the 75-period moving average (MA) on the hourly chart. However, as the pair is once again trending downward during today’s Asian session, we should remain cautious regarding whether the US dollar’s upside will face resistance following the release of economic indicators during the US session.

Among European currencies, the euro—following yesterday’s ECB policy rate announcement—weakened against the pound, another European currency. The EUR/GBP pair fell from 0.8819 to 0.8748. It rebounded without touching the 4-hour 75-period moving average. Yesterday’s decline extended the downtrend that began on March 7, so we will be closely monitoring whether the euro weakens further during U.S. trading hours.

Today, during European trading hours, Sweden’s employment figures will be released at 4:00 PM, the Eurozone’s Consumer Price Index at 7:00 PM, and Russia’s policy rate at 7:30 PM.at 20:30, India’s foreign exchange reserves; and during U.S. trading hours, at 21:30, Canada’s industrial production, raw materials price index, and international securities turnover; at 22:15, U.S. industrial production, capacity utilization, and manufacturing production; and at 23:00, the U.S. leading economic index and the University of Michigan Consumer Sentiment Index (preliminary).We will be closely monitoring the direction of the euro following this weekend’s 0.5% rate hike.