All Eyes on Whether the Euro's Recent Strength Will Continue
28.03.2023
- Remarks by Bank of England Governor Bailey
- U.S. Richmond Fed Manufacturing Index
In the previous day’s U.S. currency trading, 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 is rebounding after finding support at the 75-period moving average (MA). On the daily chart, the pair is rebounding 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.
The euro rose against the yen after Germany’s March IFO Business Climate Index, released yesterday, rose to 93.3 from 91.1 the previous month. The euro/yen pair rose from 140.535 to 142.213, breaking above the 200-period SMA on the hourly chart.On the 4-hour chart, the EUR/JPY pair appears to be forming a double bottom, having found support at lower levels. On the higher-time-frame daily chart, the pair is locked in a battle just below the 200-period EMA, so we will be watching currency strength and weakness during U.S. trading hours.
Today’s schedule includes remarks by Bank of England Governor Bailey at 5:45 p.m., remarks by Bank of England Deputy Governor Ramsden at 5:45 p.m., U.S. wholesale inventories at 9:30 p.m., remarks by ECB President Lagarde at 10:00 p.m., and remarks by GermanNager, President of the German Bundesbank; the U.S. S&P/Case-Shiller Home Price Index; at 11:00 p.m., the U.S. Consumer Confidence Index and the U.S. Richmond Fed Manufacturing Index; remarks by U.S. Federal Reserve Vice Chair Barr; and at 2:00 a.m., a U.S. 5-year Treasury auction.We will be watching to see if the euro’s recent strength continues and what direction the market takes.
Author: Keisuke Sakurai
