All eyes are on whether ECB President Lagarde’s remarks will shift the euro’s direction

All eyes are on whether ECB President Lagarde’s remarks will shift the euro’s direction

19.05.2023

The U.S. dollar rose against the yen for the sixth consecutive day yesterday, following the release of U.S. initial jobless claims data showing a decline from 264,000 the previous week to 242,000. The USD/JPY pair rose by approximately 1.5 yen, from 137.276 to 138.746, reaching the 138-yen level for the first time since November 30 of last year.From a technical perspective, USD/JPY is trending toward the upper limit of its daily rising parallel channel at the mid-140 yen level, so we should watch for an upward move following a period of consolidation.

Among European currencies, the euro rose slightly against the Japanese yen, which has become the weakest currency. The euro/yen pair rose by about 60 pips, from 148.759 to 149.438. While cross-yen pairs generally rose amid the yen’s weakening trend, the euro/yen’s gains were limited. From a technical perspective, the euro/yen has pulled back after the 4-hour RSI touched 70, so traders should be wary of a potential decline in the euro during European trading hours.

Today, the German Producer Price Index will be released at 3:00 PM Asia time; Taiwan’s current account balance at 5:20 PM Europe time; remarks by UK MPC member Haskell at 6:45 PM; Canadian retail sales at 9:30 PM U.S. time;at 9:45 PM, remarks by Williams, President of the New York Fed; at 10:00 PM, remarks by Bowman, Fed Governor; at 12:00 AM, remarks by Powell, Fed Vice Chair; and at 4:00 AM, remarks by Lagarde, ECB President. I intend to watch carefully to see if Lagarde’s remarks will shift the direction of the euro.

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