With the ECB meeting just two days away, attention is turning to the euro’s direction, as its downside appears to be holding firm

With the ECB meeting just two days away, attention is turning to the euro’s direction, as its downside appears to be holding firm

03.05.2023

In yesterday’s U.S. currency trading, the dollar fluctuated against the euro after the U.S. March manufacturing new orders report, released yesterday, came in at 0.9%—exceeding both the previous reading of -0.7% and the market forecast of 0.8%. The EUR/USD pair traded within a range of 1.0942 to 1.1007 as it sought direction, remaining range-bound around the 20-period moving average on the 4-hour chart.We will be closely monitoring today’s FOMC meeting to see if it provides a clear direction for the EUR/USD pair.

European currencies rose against the pound after the Eurozone’s April consumer price index, released yesterday, showed an increase from 6.9% in the previous month to 7.0%. The euro/pound pair rose from 0.8764 to 0.8824, breaking above the 200-period simple moving average (SMA) on the hourly chart. As the euro/pound pair appears to be moving toward the upper boundary of its weekly uptrend line, it will be worth watching whether the euro strengthens heading into the weekend.

Today’s economic indicators include Turkey’s Producer Price Index and Consumer Price Index at 4:00 PM, the Eurozone employment report at 6:00 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, the U.S. ADP Employment Report at 9:15 PM, the U.S. PMI at 10:45 PM, the U.S. ISM Non-Manufacturing Index at 11:00 PM,23:30: U.S. weekly crude oil inventories; 27:00: U.S. FOMC policy rate decision and statement; and 27:30: U.S. Fed Chair Powell’s press conference. Ahead of the ECB meeting the day after tomorrow, we will be watching the direction of the euro, which has shown resilience on the downside.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran