Will the euro's recent strength continue? All eyes are on its direction.
28.03.2023
- Remarks by Bank of England Governor Bailey
- Richmond Fed Manufacturing Index
In yesterday's U.S. currency markets, the U.S. dollar weakened against the euro, and the EUR/USD pair rose slightly from 1.0745 to 1.0819. On the 4-hour chart, the EUR/USD pair has rebounded after finding support at the 75-period moving average (MA). On the daily chart, the pair has rebounded after forming a triple bottom with the 200-period exponential moving average (EMA) acting as support; therefore, we should watch to see if the U.S. dollar's decline will continue for a while.
European currencies rose against the yen, led by the euro, which gained ground after Germany’s March IFO Business Climate Index, released yesterday, rose to 93.3 from 91.1 the previous month.The EUR/JPY pair rose from 140.535 to 142.213, breaking above the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the pair appears to be forming a double bottom pattern, having found support at lower levels. On the daily chart, a battle is underway just below the 200-period exponential moving average (EMA), so we will be watching currency strength during U.S. trading hours.
Today, at 5:45 p.m., we have remarks by Bank of England Governor Bailey and Deputy Governor Ramsden; at 9:30 p.m., U.S. wholesale inventories;at 10:00 PM, remarks by ECB President Lagarde and Bundesbank President Nagel, along with the U.S. S&P/Case-Shiller Home Price Index; at 11:00 PM, the U.S. Consumer Confidence Index, the Richmond Fed Manufacturing Index, and remarks by Fed Vice Chair Barr; and at 2:00 AM, a U.S. 5-year Treasury auction.We will be watching to see if the euro’s current strength continues.
Author: Keisuke Sakurai
