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 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 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 and broke 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 watching closely to see if the release of economic indicators during the European session brings about any changes.

Today’s schedule includes Germany’s Import Price Index at 3:00 PM, Switzerland’s Retail Sales at 3:30 PM, France’s Consumer Price Index at 3:45 PM, Germany’s Unemployment Rate at 4:55 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, Germany’s Consumer Price Index at 9:00 PM, Canada’s GDP at 9:30 PM,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: Remarks by the President of the Philadelphia Fed, 2:30 AM: U.S. – Remarks by Fed Governor Jefferson, 3:00 AM: U.S. – Regional Fed Economic Reports are scheduled. We will be watching to see if the euro rebounds following the release of CPI data from Germany and France.

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