Market Participants May Be Carefully Monitoring the Euro's Upside Potential at Month-End

Market Participants May Be Carefully Monitoring the Euro's Upside Potential at Month-End

31.03.2023

In U.S. currency trading the previous day, the U.S. dollar fluctuated against the yen following the release of the U.S. fourth-quarter real GDP figure of 2.6%.The USD/JPY pair fluctuated between 132.189 and 132.947, showing a lack of clear direction. However, during today’s Asian trading session, the pair has resumed its upward trend and has already touched 133.479. We will be closely monitoring whether the U.S. dollar continues to rise during U.S. trading hours.

Among European currencies, the euro—which became the strongest currency during U.S. trading hours—rose against the U.S. dollar.The euro rose against the U.S. dollar from 1.0823 to 1.0925, matching this month’s high. From a technical perspective, the euro is currently moving along the +2σ line of the daily Bollinger Bands, so it will be worth watching to see if it continues to rise.

Today’s economic indicators include Turkey’s trade balance at 16:00, Germany’s employment report at 16:55, the Eurozone’s employment report and consumer price index at 18:00, Canada’s real GDP, U.S. personal income, and U.S. PCE deflator at 21:30,at 22:45: U.S. Chicago Purchasing Managers’ Index; at 23:00: U.S. University of Michigan Consumer Sentiment Index; at 24:00: Remarks by ECB President Lagarde; and at 28:05: Remarks by U.S. New York Fed President Williams.We will cautiously monitor the euro’s upside potential as the month comes to a close.