All eyes are on whether the euro will rebound following the release of German and French CPI figures

All eyes are on whether the euro will rebound following the release of German and French CPI figures

31.05.2023

In the U.S. currency market yesterday, the U.S. dollar fell against the yen after the U.S. March Housing Price Index, released yesterday, came in at 0.4%—below the market forecast of 0.6%. The USD/JPY pair fell from 140.930 to 139.562, effectively breaking below the 140-yen level.From a technical perspective, USD/JPY has broken below the 20-period moving average on the 4-hour chart, and the daily RSI has entered a downtrend after peaking above 70. We will need to closely monitor whether the dollar continues to decline during U.S. trading hours.

European currencies rose against the U.S. dollar after the final reading of the Eurozone’s May consumer confidence index was released, matching the previous month’s figure of -17.4.The EUR/USD pair rebounded by approximately 70 pips from 1.0672 to 1.0746, breaking above the 20-period moving average on the hourly chart. However, as the pair has been falling again during today’s Asian session, we will be closely monitoring whether the release of economic indicators during European trading hours brings about any changes.

Today, at 3:00 PM: Germany’s Import Price Index; at 3:30 PM: Switzerland’s Retail Sales; at 3:45 PM: France’s Consumer Price Index; at 4:55 PM: Germany’s Unemployment Rate; at 8:00 PM: U.S. MBA Mortgage Applications Index; at 9:00 PM: Germany’s Consumer Price Index; at 9:30 PM: Canada’s GDP;9:50 PM: Remarks by U.S. Federal Reserve Governor Bowman; U.S. Federal Reserve Bank of Boston President Collins:Boston Fed President remarks, 10:15 PM UK MPC member remarks, 10:45 PM US Chicago PMI, 11:00 PM US JOLTS Job Openings, 12:05 AM Swiss SNB Governor Jordan remarks, 1:20 AM US Collins:Remarks by the President of the Boston Fed, 1:30 AM: U.S. – Harker, President of the Philadelphia Fed; 2:30 AM: U.S. – Jefferson, Fed Governor; 3:00 AM: U.S. – Regional Fed Economic Reports. We will be watching to see if the euro rebounds following the release of CPI data from Germany and France.