Keep an eye on the euro’s direction following the 0.5% rate hike over the weekend

Keep an eye on the euro’s direction following the 0.5% rate hike over the weekend

17.03.2023

In the previous day’s U.S. currency trading, the U.S. dollar rebounded against the yen after the U.S. February housing starts data, released yesterday, came in at 9.8%, significantly exceeding the market forecast of 0.2%.USD/JPY rose from 131.732 to 133.831, rebounding up to the 75-period moving average (MA) on the hourly chart. However, as the pair has resumed a downward trend 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 trading session.

Among European currencies, the euro—following yesterday’s ECB policy rate announcement—weakened against the pound. The EUR/GBP pair fell from 0.8819 to 0.8748, rebounding without touching the 75-period moving average on the 4-hour chart. 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, at 4:00 PM CET, Sweden’s employment statistics will be released; at 7:00 PM CET, the Eurozone’s Consumer Price Index; at 7:30 PM CET, Russia’s policy rate;at 8:30 PM (Indian time) India’s foreign exchange reserves, and during U.S. trading hours at 9:30 PM Canada’s industrial production, Canada’s raw materials price index, and Canada’s international securities turnover; at 10:15 PM U.S. industrial production, U.S. capacity utilization, and U.S. manufacturing production; and at 11:00 PM the U.S. leading economic index and the University of Michigan Consumer Sentiment Index (flash estimate).We will be closely monitoring the direction of the euro following the 0.5% rate hike over the weekend.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   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

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   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?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran