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 U.S. currency trading 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 market expectations 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 (MA) on the 4-hour chart, and the daily RSI has begun to pull back from above the 70 level. We will need to carefully assess whether the U.S. dollar will continue 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 about 70 pips from 1.0672 to 1.0746 and broke above the 20-period moving average on the hourly chart. However, as the pair has been trending lower again during today’s Asian session, we will be closely monitoring whether the release of economic indicators during the European session brings about any changes.

Today, at 15:00, Germany’s Import Price Index; at 15:30, Switzerland’s Retail Sales; at 15:45, France’s Consumer Price Index; at 16:55, Germany’sunemployment rate, at 20:00 the U.S. MBA Mortgage Applications Index, at 21:00 the German Consumer Price Index, at 21:30 Canada’s GDP, at 21:50 remarks by Fed Governor Bowman and remarks by Collins, President of the Boston Fed, at 22:15 the UK’sMPC Member Mann’s remarks, 22:45 U.S. Chicago PMI, 23:00 U.S. JOLTS Job Openings, 24:05 Switzerland: SNB Governor Jordan’s remarks, 25:20 U.S. Collins:Boston Fed President’s remarks, 25:30: U.S. Harker: Philadelphia Fed President’s remarks, 26:30: U.S. Jefferson Fed Governor’s remarks, and 27:00: U.S. Federal Reserve Bank District Economic Reports are scheduled.We’ll be watching to see if the euro rebounds following the release of CPI data from Germany and France.