Should We Keep an Eye on the Euro's Direction This Weekend Following the 0.5% Rate Hike?

Should We Keep an Eye on the Euro's Direction This Weekend Following the 0.5% Rate Hike?

17.03.2023

In U.S. currency trading yesterday, 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 to the 75-period moving average (MA) on the hourly chart. However, as the pair is once again trending downward during today’s Asian trading session, we should remain cautious as to 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, another European currency. The euro/pound pair fell from 0.8819 to 0.8748, rebounding without touching the 75-period moving average on the 4-hour chart.Due to yesterday’s decline, the EUR/GBP pair has continued its downtrend that began on March 7. We will be closely monitoring the situation to see if the euro weakens further during U.S. trading hours.

Today’s schedule includes Sweden’s employment statistics at 16:00 European time, the Eurozone’s Consumer Price Index at 19:00, Russia’s policy interest rate at 19:30, and India’s foreign exchange reserves at 20:30, followed by Canada’sIndustrial Production, Canada’s Raw Materials Price Index, and Canada’s International Securities Turnover; and during U.S. trading hours at 21:30, Canada’s Industrial Production, at 22:15, U.S. Industrial Production, U.S. Capacity Utilization, and U.S. 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.