Will the Euro Weaken Further on German CPI Data? Market Watches for Directional Cues
28.04.2023
- Germany's Consumer Price Index
- University of Michigan Consumer Sentiment Index
In the U.S. currency market yesterday, the U.S. dollar rose against the euro after data released yesterday showed that U.S. existing home sales fell 23.3% year-over-year, worse than the market forecast of a 21.1% decline.The EUR/USD pair fell from 1.1062 to 1.0992. The decline halted upon touching the 200-period EMA on the hourly chart. Since the EUR/USD is currently in a triangular consolidation pattern centered around the 20-period MA on the 4-hour chart, we should remain cautious as to whether the downtrend will continue.
Among European currencies, the EUR/GBP pair—which involves two European currencies—fell. The EUR/GBP dropped from 0.8871 to 0.8819. As the pair is trading just below the 75-period moving average on the 4-hour chart and appears poised for further declines, it will be important to monitor whether the euro’s momentum is waning and what direction the market takes.First, we’ll be keeping a close eye on the German CPI results during European trading hours.
Today’s schedule includes Swiss retail sales at 15:30, France’s producer price index and consumer price index at 15:45, Turkey’s trade balance at 16:00, and Germany’sEmployment Report, at 17:00: Germany’s Q1 GDP and remarks by SNB Governor Jordan, at 18:00: Eurozone Q1 GDP, at 18:45: remarks by ECB President Lagarde, at 21:00: Germany’sConsumer Price Index at 21:30, Canada’s February Real GDP, U.S. Personal Income, and U.S. PCE Deflator at 21:30, the U.S. Chicago Purchasing Managers’ Index at 22:45, and the U.S. University of Michigan Consumer Sentiment Index at 23:00.We need to watch for any directional shifts—will the euro weaken further on the back of the German CPI?
Author: Keisuke Sakurai
