All eyes are on the euro's performance at the start of the week

All eyes are on the euro's performance at the start of the week

03.04.2023

In the U.S. currency markets last weekend, the Canadian dollar emerged as the strongest currency during U.S. trading hours, causing the EUR/CAD pair to drop by approximately 120 pips from 1.4769 to 1.4646. During today’s Asian session, the pair opened slightly lower and has already touched 1.4579. On the higher timeframe weekly chart, the RSI has shown divergence after touching 70, so we need to be cautious about whether prices will trend downward at the start of the week.

Despite the fact that the Harmonized Index of Consumer Prices (HICP) released last weekend showed a year-on-year increase of 5.7%, up from 5.6% the previous month, the euro fell against the yen.The EUR/JPY pair fell by approximately 1.7 yen, from 145.652 to 143.909. It broke below the 75-period moving average (MA) on the hourly chart. On the weekly chart, the RSI is showing signs of a downtrend, while on the monthly chart, it has been hovering around 70, making it very difficult to gauge the market’s direction. For the time being, we will focus on the direction indicated by the shorter-term charts.

Today, at 4:00 PM, Turkey’s Consumer Price Index and Producer Price Index will be released; at 4:30 PM, Switzerland’s Manufacturing PMI; at 4:50 PM, France’s Manufacturing PMI; at 4:55 PM, Germany’s Manufacturing PMI; at 5:00 PM, the Eurozone’s Manufacturing PMI; at 5:30 PM, the UK’s Manufacturing PMI; at 6:00 PM, South Africa’s Manufacturing PMI;at 10:45 PM: U.S. Manufacturing PMI; at 11:00 PM: U.S. ISM Manufacturing Index and U.S. Construction Spending; and at 1:15 AM: remarks by U.S. Federal Reserve Governor Cook. Since most major markets in Europe and the U.S. will be closed on Friday, the 7th, we should pay close attention to price movements in the first half of the week.