With the yen on a downward trend, all eyes are on the direction of the euro
13.04.2023
- Remarks by BOC Governor Maclean
- UK GDP
In the U.S. currency market yesterday, the dollar fell against the euro after the March Consumer Price Index rose by 5.0% year-over-year. The EUR/USD pair rose by just over 90 pips, from 1.0911 to 1.1005, hitting a new high for the month. Since the EUR/USD pair continues to trend upward, supported by the 20-day moving average on the daily chart, we should remain vigilant to see if it will extend its gains heading into the weekend.
Among European currencies, the euro rose slightly against the yen. The euro/yen pair climbed from 145.786 to 146.665. The move came after the 4-hour RSI exceeded 70 and reached 75.4.On the daily chart, EUR/JPY has risen for five consecutive days, while the daily RSI has not touched 70 and is hovering around 63, indicating that there is still room for further gains. We will carefully monitor the situation to see if the euro continues to rise into U.S. trading hours and breaks through this year’s high.
Today, at 3:00 PM, UK Industrial Production, UK GDP, UK Manufacturing Production, UK Trade Balance, and German Consumer Price Index will be released; at 6:00 PM, Eurozone Industrial Production; and at 8:45 PM, Germanremarks by German Bundesbank President Nagel, at 9:30 PM US Producer Price Index and US Initial Jobless Claims, at 10:00 PM remarks by Canadian BOC Governor McClem and UK MPC member Pill, at 11:30 PM US weekly natural gas inventories, and at 2:00 AM US 30-year Treasury auction.We want to carefully assess the direction of the euro, which is rising amid a weakening yen.
Author: Keisuke Sakurai
