Will the euro weaken further on the back of German CPI data? Market participants are on alert regarding the direction of the currency.
28.04.2023
- Germany's Consumer Price Index
- University of Michigan Consumer Sentiment Index
In yesterday's U.S. currency trading, 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 triangle consolidation pattern centered around the 20-period MA on the 4-hour chart, we should remain cautious regarding whether the decline will continue.
Among European currencies, the EUR/GBP pair 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 watch for signs of a potential weakening in the euro’s momentum. For now, we will be closely monitoring the German CPI results during European trading hours.
Today’s schedule includes Swiss retail sales at 3:30 PM, French producer price index and consumer price index at 3:45 PM, Turkish trade balance at 4:00 PM, German employment statistics at 4:55 PM, German Q1 GDP and remarks by SNB Governor Jordan of Switzerland at 5:00 PM, and Eurozone Q1 GDP at 6:00 PM,18:45: Remarks by ECB President Lagarde; 21:00: German CPI; 21:30: Canadian February Real GDP, U.S. Personal Income, U.S. PCE Deflator; 22:45: U.S. Chicago PMI; 23:00: U.S. University of Michigan Consumer Sentiment Index.We need to watch for any directional shifts, as the euro may weaken further following the release of Germany’s CPI.
Author: Keisuke Sakurai
