Will the market wait and see how the euro moves while European markets are closed?

Will the market wait and see how the euro moves while European markets are closed?

01.05.2023

Last weekend, the U.S. dollar strengthened against the yen, with the USD/JPY pair rising from 133.363 to 136.757. The pair followed an uptrend along the 10-period moving average on the hourly chart. On the April monthly chart, which closed last weekend, the USD/JPY formed a bullish candle with a lower wick, indicating a higher low. Ahead of this week’s FOMC meeting, we will be closely monitoring whether the U.S. dollar continues to strengthen against the yen.

European currencies saw the euro fluctuate against the U.S. dollar after Germany’s April consumer price index, released last weekend on April 28, came in at 7.2% year-over-year, down from 7.4% the previous month. The EUR/USD pair traded within a range of 1.0962 to 1.1044, searching for direction, and saw sharp swings around the 200-period simple moving average (SMA) on the hourly chart.On the daily chart, while the EUR/USD pair is finding support at the 20-day moving average, the daily RSI is showing divergence just below the 70 level. We will closely monitor the EUR/USD’s price action at the start of the month.

Today’s schedule includes the India Manufacturing PMI and Japan’s Consumer Price Index at 2:00 PM, the U.S. Manufacturing PMI at 10:45 PM, U.S. Construction Spending and the U.S. ISM Manufacturing Index at 11:00 PM, the U.S. 6-month Treasury bill auction at 12:30 AM, and Brazil’s trade balance at 3:00 AM. With European markets closed, I’ll be watching closely to see if the euro sees any significant price movements.